Phillip Marnier had earnings from his salary of $40,000, interest on savings of $700, and a contribution to a registered retirement saving plan of $1,500.Phillip's net income would be

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting all deductions from total income. Therefore, Phillip's net income would be:

Total Income = Salary + Interest + RRSP Contribution 
Total Income = $40,000 + $700 + $1,500 
Total Income = $42,200

Net Income = Total Income – Deductions 
Net Income = $42,200 – $3,000 (RRSP Contribution) 
Net Income = $39,200

Therefore, the correct answer is A) $39,200.

Phillip Marnier Had Earnings from His Salary of $40,000, Interest