The tip is a economic reward that is given as thanks for a good service and for the product consumed.
In most places, the client decides whether or not to give a tip and the amount of the tip. In the United States, the custom of tipping has expanded beyond restaurants. Generally, 15% of the value spent is left as a tip for the person providing the service, be it a waiter, taxi driver, or any other activity in which the tip is usual.
The formula is given in the middle. You are supposed to insert the value of x into this formula to find the value of y (like in the first given example):
9258.13 - 3650 - 5700 = $ -91.87 A negative numbers mean the deduction and exemption sheltered all of his income, so he has $0 taxable income, choice D.