Question

Teresa is an unmarried dependent child who works part-time at the neighborhood doggy day care as a pet-sitter and dog walker, earning $4.200 in 2019. Teresa also received $150 interest on her savings account. What is Teresa's earned income, and what is her gross income?

a.$4,350 earned income and $4,200 gross income
b.$4,350 earned income and $4,350 gross income
c.$4,200 earned income and $4,200 gross income
d.$4,200 earned income and $0 gross income
e.$4,200 earned income and $4,350 gross income

Answer 1

Teresa's earned income is $4,350 and her gross income is $4,500.

Step-by-step explanation:

Teresa's earned income includes her part-time job earnings as a pet-sitter and dog walker, which are $4,200 in 2019. Additionally, she received $150 in interest on her savings account. Therefore, Teresa's earned income is $4,200 + $150 = $4,350.

Her gross income is the sum of her earned income and any other income she may have, which in this case is $4,350 from her part-time job and $150 in savings account interest. Therefore, her gross income is $4,350 + $150 = $4,500.