The first 5 questions are designed to measure key competencies related to figuring the allowable portion of standard deductions to U.S. income. They also encourage use of your research tools. Read each scenario carefully and use your reference materials (VITA/TCE Puerto Rico Resource Guide and Publication 1321) to answer the questions. Round all fractions to four decimal places. 

1.Isabela was a resident of Puerto Rico during 2020. She is single and under 65 years of age. She works as a U.S. government employee and her salary was $34,000. She also received income of $6,000 from a part-time job in Puerto Rico not subject to U.S. tax. What is the standard deduction that Isabela can claim?

a. $10,540

B. $10,890

c. 12,200

d. $14,050

2. German and Elena were residents of Puerto Rico in 2020. They are age 72 and file a joint return. German is retired from the U.S. Federal Reserve Bank and Elena is retired from the U.S. government. Their retirement income were $28,000 and $42,000, respectively. What is German and Elena’s standard deduction?

a. $12,600

b. $18,650

c. $27,400

d. $28,000