Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other "necessities." Manuel's discretionary income was:
A) $28,000
B) $13,000
C) $23,000
D) $18,000
E) There is not enough information to tell.

Question

Quizplus · Accepted Answer

Manuel's discretionary income is calculated as:
Discretionary income = (Total income - Taxes - Necessities)
Discretionary income = ($28,000 - $5,000 - $10,000)
Discretionary income = $13,000

Manuel Acala Is a Marketing Analyst, but Made Only $28,000