Emily had an excellent year as a saleswoman in 2011,earning $97,000.She paid $17,000 for "necessities" such as mortgage,food,and clothing.She was given a six-week,all expenses paid vacation by the company for her sales performance that had a value of $9,000.Her state and federal income taxes totaled $24,000.What was her discretionary income?

Question

Quizplus · Accepted Answer

Discretionary income is the money left after deducting necessary expenses such as taxes, housing, and food.

Emily's necessary expenses are $17,000 (for mortgage, food, and clothing) and $24,000 (for state and federal taxes), which totals to $41,000.

Her total income is $97,000 + $9,000 (value of vacation) = $106,000.

Her discretionary income, therefore, is $106,000 - $41,000 = $65,000.

Therefore, the correct answer is C) $65,000.

Emily Had an Excellent Year as a Saleswoman in 2011,earning