The earned income is $80,000 and the capital income is $5,000. Then the correct option is B.
A profit in the value of an asset then an investor can make a profit by selling an asset. Then selling price of an asset must be greater than the cost of an asset.
Padraig is a financial advisor.
He earned a salary of $80,000 last year and sold stocks for $5,000.
A salary of $80,000 is known as earned income because of employment bases.
$5,000 is a capital gain because this is obtained from the selling of stocks.
The income gained by the interest income, rental income, or dividend income is known as passive income.
More about the capital income link is given below.
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