Emily had an excellent year as a salesperson in 2011,earning $97,000.She paid $17,000 for "necessities" such as mortgage,food,and clothing.Her state and federal income taxes totaled $24,000.What was her disposable income?
A)$56,000
B)$73,000
C)$80,000
D)$114,000
E)There is not enough data provided to calculate her discretionary income.

Question

Quizplus · Accepted Answer

Her disposable income is calculated by subtracting her expenses (necessities and taxes) from her earnings:
$97,000 - $17,000 - $24,000 = $56,000

Therefore, the correct answer is B, $73,000 is incorrect as an answer because it is not calculated correctly.

Emily Had an Excellent Year as a Salesperson in 2011,earning