Question

As the owner of a Bluetooth specialties store, Alicia Fontainebleau has an income of $72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janeiro. What was Alicia's discretionary income last year

Answer 1

$20,000

Step-by-step explanation:

The computation of the discretionary income last year is shown below:

Discretionary income last year = Income - taxes paid per year - other expenses paid

= $72,000 - $30,000 - $22,000

= $20,000

We simply deduct the taxes and the other expenses from the income so that the discretionary income last year could arrive

Plus we do not considered the additional expenditure spent