Jameson receives $50,000 in income. He paid $10,000 in taxes, $7,500 in rent and utilities, $5,000 on food, $2,000 in clothing, and $1,000 on a new couch. Based on these calculations, Jameson's discretionary income is

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Quizplus · Accepted Answer

Discretionary income is what's left after taxes and necessary expenses (rent, utilities, food, clothing). Jameson has $50,000 - $10,000 (taxes) - $7,500 (rent/utilities) - $5,000 (food) - $2,000 (clothing) = $25,500. The couch is a discretionary expense.

Jameson Receives $50,000 in Income