Keith McPherson earned $20,000 last year as a carpenter.He paid $6,000 for food,rent,medical expenses,and other "necessities." There was little construction work in February,so he took a trip to the Caribbean and spent $4,000.What was Keith's discretionary income last year?
A)$4,000
B)$20,000
C)$10,000
D)$12,000
E)The information given is insufficient.

Question

Quizplus · Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities.Information on Keith McPherson's taxes is not given here.

Keith McPherson Earned $20,000 Last Year as a Carpenter