Question

Net income = Gross income - Business Expenses and Deductions. Given the following information, what does the net income for the month equal? Gross Income = $4,000, Expenses = $1,000, Deductions = $500a. $500b. $1,000c. $2,500d. $3,000

Answer 1

Answer:

c. $2,500

Explanation:

Given that

Net income = Gross income - Business Expenses and Deductions

By following this above formula, the net income would be  

= $4,000 - $1,000 - $500

= $2,500

The net income has come after subtraction of the business expenses and the business deductions from the gross income.

Hence, the net income is $2,500 i.e option c.