Question

He earned a salary of $80,000 last year and sold stocks for $5,000. Which of the following types of income did Padraig have?

Answer 1

Answer:

Step-by-step explanation:

There are 3 main types of income one can generate. They are termed as the earned income, the passive income and the capital gains income. Earned income is the compensation you get from working or offering a service. Passive income is the type of income you generate from what you own or your assets. Lastly, Capital gains income, also called "portfolio income", is the money generated from selling investments at a much higher price. Padraig have two type of income here. He had earned income by receiving the $80000 salary and he had capital gains income for selling stocks for $5000.