Question

Use this formula to help solve the problem.

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

gross income = $4000, expenses = $1500, deductions = $500

Responses

$4,000
$4,000

$2,000
$2,000

$1,500
$1,500

$500
$500

Answer 1

Net income = gross income − (expenses + deductions)
= $4,000 − ($1,500 + $500) = $4,000 − $2,000 = $2,000

Answer: $2,000