Clyde 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, Clyde's discretionary income is

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Discretionary income is calculated by subtracting taxes and necessary expenses (rent, utilities, food, clothing) from total income. Clyde's discretionary income is $50,000 - $10,000 (taxes) - $7,500 (rent and utilities) - $5,000 (food) - $2,000 (clothing) = $25,500. The new couch is considered a discretionary expense.

Clyde Receives $50,000 in Income