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 income ii passive income iii capital gains income a. i and ii b. i and iii c. ii and iii d. iii

The answer is b. I and III

Step-by-step explanation:

Great question, it is always good to ask away and get rid of any doubts that you may be having.

To Answer this question we need to first understand what each type of income is.

Earned Income refers to the an amount of money received from the act of providing goods or services. Such Income includes Salaries, Paychecks, Sub-contracting work etc.

Passive Income is a periodic inflow of cash received with little to no effort on the part of the beneficiary.

Capital Gains Income refers to the money made on selling a certain asset above the value of purchase.

Know that we have this information we can see that Padraig has two types of incomes. Both Earned Income from his salary and Capital Gains Income from the stocks that he sold. Therefore the answer is b. I and III

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