California: A taxpayer has the following expenses; $4,000 for unreimbursed work-related expenses, $500 for tax preparation, $600 repayment of prior year income, $1,200 for legal assistance in claiming a tax refund, and $2,500 in investment expenses. Federal AGI is $55,000 and California AGI is $62,500. What amount of these expenses goes on each return?

1. $0 for federal; $7,550 for state.
2. $7,250 for federal; $7,550 for state.
3. $7,250 for federal; $0 for state
4. $0 for both federal and state