Eddie Is a Factory Worker Who Makes About $32,000 a Year

question 9

Multiple Choice

Eddie is a factory worker who makes about $32,000 a year. Eddie's husband, Dustin, works part time as a dental assistant and makes about $15,000. Their combined income is just enough to pay their mortgage and make ends meet. Eddie and Dustin are considered:

• A) lower middle class.
• B) upper middle class.
• C) old middle class.
• D) working class.

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Definitions:

Discontinued Operations

Components of a business—such as segments or subsidiaries—that have been disposed of or are held for sale, and are reported separately in financial statements for clearer assessment by investors.

Loss on Disposal

Loss on disposal occurs when the proceeds from the sale of an asset are less than its carrying amount on the books, resulting in a financial loss.

Bad Debt Expense

An expense reported on the income statement, representing the amount of uncollected receivables from customers during a period.

Gross Profit

Gross profit is the difference between sales revenue and the cost of goods sold before deducting overheads, interest, taxes, and other expenses.