Brooke works part-time as a waitress in a restaurant.For groups of 7 or more customers,the customer is charged 15% of the bill for Brooke's services.For parties of less than 7,the tips are voluntary.Brooke received $11,000 from the groups of 7 or more and $7,000 in voluntary tips from all other customers.Using the customary 15% rate,her voluntary tips would have been only $6,000.Brooke must include $17,000 ($11,000 + $6,000)in gross income.

Question

Quizplus · Accepted Answer

Brooke must include the actual amount she received, which is $18,000 ($11,000 + $7,000), in her gross income, not the hypothetical amount.

Brooke Works Part-Time as a Waitress in a Restaurant