Question

Use this formula to help solve the problem.

net income = gross income - business expenses and deductions
Given the following information what does the net income for the month equal?

Gross Income = $3,000, Expenses = $1,000, Deductions = $500

Responses

$500
$500

$1,500
$1,500

$1,000
$1,000

$3,000
$3,000

Answer 1

Net income = $3,000 - ($1,000 + $500) = $3,000 - $1,500 = $1,500.