Question

Your gross pay is $1,878.96, net income is $1,196.34,and fixed expenses are $1,338.54. What is your discretionary income?

A. $540.42
B. $682.62
C. $0
D. $142.20

Answer 1

Option C. $0

Explanation:

Income remaining after deductions of taxes and basic living costs is considered as discretionary income.

In this question after deduction in gross pay the net income is given $1,196.34

and fixed expenses are more than net income. Therefore, it would be negative answer or you can say Option C. $0 is the answer.