Marsha Is Single, Had Gross Income of $50,000, and Incurred

Short Answer

Marsha is single, had gross income of $50,000, and incurred the following expenses:
$\begin{array}{lr}\text { Charitable contribution } & \$ 2,000 \\\text { Taxes and interest on home } & 7,000 \\\text { Legal fees incurred in a tax dispute } & 1,000 \\\text { Medical expenses } & 3,000 \\\text { Penalty on early withdrawal of savings } & 250\end{array}$
Her AGI is:
a. $\$ 39,750$ .
b. $\$ 49,750$ .
c. $\$ 40,000$ .
d. $\$ 39,750$ .
e. $\text { None of the ahove }$