Question

Use this formula to help solve the problem.

net income = gross income - business expenses and deductions
Based on the following information, what does the net income for the month equal? Gross Income = $5,000, Expenses = $2,000, Deductions = $1,000

Responses

$4,000
$4,000

$3,000
$3,000

$1,000
$1,000

$2,000
$2,000

Answer 1

Net income = $5,000 − $2,000 − $1,000 = $2,000

Answer: $2,000