Question

A 3-column table has 6 rows. The first column has entries gross income, federal tax, state tax, local tax, total deductions, and net income. The second column is labeled Withholdings with entries blank, 16 dollars, 3 dollars, 2 dollars and 50 cents, 22 dollars and 50 cents, blank. The third column is labeled Income with entries 90 dollars, blank, blank, blank, blank, 67 dollars and 50 cents.
Take another look at this chart.

If you were planning a budget, which amount would you use to record your income?

$16.00
$22.50
$67.50
$90.00

Answer 1

$67.50

Use the net income (take‑home pay) because it’s the amount left after withholdings/deductions (90.00 − 22.50 = 67.50), which is what you actually have to budget.