Question

When making a major purchase, first determine your ______ income by subtracting the deductions from your gross pay.

(Sorry, no choices!)

Answer 1

When making a major purchase, first determine your net income by subtracting the deductions from your gross pay.

Step-by-step explanation:

In business and accounting, net income is an entity's income minus cost of goods sold, expenses and taxes for an accounting period.

Answer 2

net income

Step-by-step explanation:

There are two concepts of income. Gross income, which is the nominal amount of salary, and net income, which is gross income minus all income taxes. For example, if you have a contract-negotiated $ 5000 salary, this is your gross income. Your net income is the total left over for you after the tax is levied. For example, if your income of $ 5000 incurs $ 700 of taxes, your net income will be $ 4300.