Mr and Mrs Compute Their Adjusted Gross Income (AGI) and Taxable Income

Multiple Choice

Mr. and Mrs. Liddy, ages 39 and 41, file a joint return and have no dependents for the year. Here is their relevant information: Standard Deduction Table. $\begin{array}{llr} \text {Salaries } &\$47,000\\ \text { Taxable interest income } &5,000\\ \text {Above-the-line deductions } &1,800\\ \text { Itemized deductions } &16,250\\\end{array}$
Compute their adjusted gross income (AGI) and taxable income.

A) AGI $50,200; taxable income $25,400.
B) AGI $52,000; taxable income $35,750.
C) AGI $52,000; taxable income $33,550.
D) AGI $50,200; taxable income $9,150.