Compute the gross income, adjusted gross income, and taxable income in the following situation. Use the exemptions and deductions in the table to the right. Explain how it was decided whether to itemize deductions or use the standard deduction. A man is single and earned wages of $31,100. He received $270 in interest from a savings account. He contributed $400 to a tax-deferred retirement plan. He had $6400 in itemized deductions from charitable contributions. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Single up to $9325 up to $37,950 up to $91,900 up to $191,650 up to $416.700 up to $418,400 above $418,400 $6350 $4050 His gross income is $ (Simplify your answer.) His adjusted gross income is $ (Simplify your answer.) Should he use the standard deduction or itemized deductions when finding his taxable income? A. He should use itemized deductions as it would deduct less money from his taxable income. B. He should use the standard deduction as it would deduct more money from his taxable income. c. He should use itemized deductions as it would deduct more money from his taxable income. D. He should use the standard deduction as it would deduct less money from his taxable income. His taxable income is $ (Simplify your answer.)