Choice "b" is correct. The question asks for AGI, but all of the items in the
list are items of potential gross income. There are no adjustments included in
the list; therefore, in this case, AGI is the same as gross income. The
calculation is as follows: Salary | $ 50,000 | | Inheritance | 0 | [not taxable] | Alimony from ex-spouse | 12,000 | | Child support from ex-spouse | 0 | [not taxable] | Capital loss on investment stock sale | (3,000) | [maximum deductible] | AGI | $ 59,000 | |
Choices "d", "a", and "c" are incorrect, per the above calculation. |
