The Internal Revenue Service is auditing the tip income of waiters and waitresses at the Truckee Diner, home of excellent hamburgers and milkshakes. The revenue agent discovers that Maggie, who earns $2,000 in hourly wages as a waitress, reports $8,000 in tips. All of the other waiters and waitresses report tip income no greater than 200 percent of their salaries. Is Maggie unusually honest, or should the agent suspect something else is going on?

Answer rating: 100% (QA)

While Maggies reported tip income seems high compared to her colleagues its difficult to definitivel... View the full answer