Question

Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent, medical expenses, and other "necessities." There was little construction work in February, so he took a trip to the Caribbean and spent $4,000. What was Keith's discretionary income last year?

Answer 1

Answer:

E. There is not enough information to determine Keith's discretionary income

Explanation:

The discretionary income is the income which is left after paying the taxes, food, rent, medical expenses, and other "necessities

Since in the given situation, all the information is given related to discretionary income but the tax rate is not given or the taxes paid is not given due to which we are unable to compute the discretionary income for the  last year