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

Question 27

Multiple Choice

Marsha is single, had gross income of $50,000, and incurred the following expenses:  Charitable contribution $2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250\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) None of these.

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