Leah had an excellent year as a salesperson in 2017,earning $98,000.She paid $38,000 for necessities such as mortgage,food,and clothing.Her state and federal income taxes totaled $24,000.What was her disposable income?
A)$36,000
B)$74,000
C)$60,000
D)$98,000
E)There is not enough data provided to calculate her discretionary income.

Question

Quizplus · Accepted Answer

Disposable income is the money that remains after paying for taxes.Disposable income = Gross income − Taxes (federal,state,and local)only.Disposable income = $98,000 − $24,000 = $74,000.

Leah Had an Excellent Year as a Salesperson in 2017,earning