In 2019, Cindy, who is single, has salary income of 32,000 and interest income of 1,500. She

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Question:

In 2019, Cindy, who is single, has salary income of 32,000 and interest income of 1,500. She makes a contribution to an individual retirement account (IRA) in the amount of $6,000. Her itemized deductions for 2019 are $6,500. Assuming she wishes to minimize her tax liability, which of the following is correct?

a. Her AGI is $27,500 and her taxable income is $21,000

b. Her AGI is $33,500 and her taxable income is $21,000

c. Her AGI is $27,500 and her taxable income is $15,300

d. Her AGI is $33,500 and her taxable income is $15,300