During 2014, Sarah Had the Following Transactions Sarah's AGI Is:
A)

Short Answer

During 2014, Sarah had the following transactions:
$\begin{array}{llr} \text { Salary } &\$80,000\\ \text { Interest income on City of Baltimore bonds } &1,000\\ \text {Damages for personal injury (car accident) } &100,000\\ \text {Punitive damages (same car accident) } &200,000\\ \text { Cash dividends from Chevron Corporation stock } &7,000\\\end{array}$

Sarah's AGI is:
A) $\$ 185,000$
B) $\$ 187,000$
C) $\$ 285,000$
D) $\$ 287,000$
E) $\$ 387,000$