Question

1. According to Rory's paycheck, he earned $800 last month, but before taxes and other deductions were

taken out he earned $1,050. Which amount should be recorded as income in his Income and Expense
Statement? (2 points)

Answer 1

Total Income of Rory's is $1,050.

Step-by-step explanation:

Income is the total amount that is earned by person. This is the total amount that include income from all sources from which tax amount is not deducted.

So,

Total Income = $1,050

Tax amount = $1050 - $800

= $ 250

Total income is the amount that is earned by the person from all sources of income. This income is also called tax able income. There is tax rate decided by government to calculate and deduct the amount from taxable Income. The remaining amount is the Net Income of the person after deduction of Taxes.