Carey is a waiter at a restaurant that pays a small hourly


Carey is a waiter at a restaurant that pays a small hourly amount plus tips. Customers are not required to tip the waiter. Carey is especially attentive and friendly, and her tips average 25% of the restaurant charges. Is Carey required to include any of her tips in gross income when the customer has no legal obligation to make the payment? Explain the basis for your conclusion.

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Accounting Basics: Carey is a waiter at a restaurant that pays a small hourly
Reference No:- TGS01514488

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