Emily had an excellent year as a salesperson in 2014, earning $97,000. She paid $37,000 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)$73,000
C)$60,000
D)$97,000
E)There is not enough data provided to calculate her discretionary income

Question

Quizplus · Accepted Answer

Disposable income = Gross income - Taxes (federal, state, and local) only. Disposable income = $97,000 - $24,000 = $73,000. Therefore, her disposable income was $73,000.

Emily Had an Excellent Year as a Salesperson in 2014