Emily had an excellent year as a salesperson in 2011, 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 discretionary income?

Question

Quizplus · Accepted Answer

Discretionary income = Gross income - Taxes (federal, state, and local) - Necessities (mortgage, food, and clothing). Discretionary income = $97,000 - $24,000 - $37,000 = $36,000. Therefore, the correct answer is A) $36,000.

Emily Had an Excellent Year as a Salesperson in 2011