6
QuizMultiple Choice

Sources of Income

Question 6 • SHS Alt Personal Finance - 2021

Padraig is a financial advisor. 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?I earned incomeII passive incomeIII capital gains income

Answer
A
I and II
B
I and III
C
II and III
D
III

Explanation

Padraig’s $80,000 salary is earned income because it came from his work as a financial advisor. The $5,000 from selling stocks is capital gains income. The question does not describe any passive income, so the correct choice is I and III.

AI-written and checked against the verified answer.

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