Question

Padraig is a financial advisor. He earned a salary of $80,000 last year and sold stocks for $5,000. Which of the following types of income did Padraig have? I earned income II passive income III capital gains income a. I and II b. I and III c. II and III d. III

Answer 1

b.I and III hope this helps

Answer 2

Answer: Option 'b' is correct.

Explanation:

Since we have given that

Amount of salary he earned last year = $80,000

As he is a financial advisor and he gets a salary.

So, it becomes "Earned income".

Now, he sold stocks for $5000,

So, he is selling his assets to gain an amount of $5000.

so, it becomes "Capital gains".

As I and III are correct

He has earned income i.e. I and has capital gains i.e. III

Hence, Option 'b' is correct, As I and III are correct .