No legal obligation to make the payment

Assignment Help Accounting Basics

Reference no: EM131130111

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.

Reference no: EM131130111

Questions Cloud

Would it be better to operate with 15 workers : Is it sensible to continue to operate at a loss with 14 workers?

Write descriptive research question for a dependent variable : Write a descriptive research question for a dependent variable. Using the scripts from the textbook (p. 133), write an inferential research question to compare groups or related variables:

Does rat infestation affect the health of the community : My quantitative PICO question is: Does rat infestation affect the health of the community as compared to communities without rats?

Explain the effects on the farmers production cost : Consider a switchgrass farmer whose initial break-even price is $76 = $36 explicit cost + $40 opportunity cost for land. For each of the following changes, explain the effects on the farmers production cost and break-even price. (Related to Applic..

No legal obligation to make the payment : 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..

Discuss the inventory management issues : Discuss the inventory management issues facing Southern California Edison and Tesla Motor Company.Inventory management issues facing Southern Califonia Edison and Tesla Motor Company. (a) What are the differences between the two companies and why? (b..

Fallacies and errors in sound reasoning : Fallacies and Errors in Sound Reasoning" Please respond to the following: Use the Internet to locate at least two (2) advertisements that exhibit any of the following fallacies: equivocation, false authority, ad hominem, appeal to ignorance, or bandw..

Evaluate whether management human resource plan : Evaluate whether management's human resource plan for the immediate plant closing is the correct plan, including legal implications of the WARN act as it pertains to the scenario.

Promise of health check outsourcing-small cost : How do you respond to this in a discussion? "Promise of health check outsourcing: small cost, high excellence, and competence have been very basic in medicinal outsourcing the information technology. Recently in particular Committee of America govern..

User Account

All Pages