Daniel, age 38, is single and has the following income and expenses in 2014.
Salary income .................................................................. $60,000
Net rent income ................................................................... 6,000
Dividend income .................................................................. 3,500
Payment of alimony ............................................................ 12,000
Mortgage interest on residence ................................................. 4,900
Property tax on residence ........................................................ 1,200
Contribution to traditional IRA ................................................ 5,000
Contribution to United Church ................................................. 2,100
Loss on the sale of real estate (held for investment) ......................... 2,000
Medical expenses ................................................................. 3,250
State income tax .................................................................... 300
Federal income tax ............................................................... 7,000
a. Calculate Daniel's AGI.
b. Should Daniel itemize his deductions from AGI or take the standard deduction?