Daniel, age 38, is single and has the following income and expenses in 2022:

Salary income $147,000

Net rent income 18,500

Dividend income 1,900

Payment of alimony (divorce finalized in March 2020) 20,000

Mortgage interest on residence 7,000

Property tax on residence 2,600

Contribution to traditional IRA (assume the amount is fully deductible) 1,800

Contribution to United Church 2,900

Loss on the sale of real estate (held for investment) 575

Medical expenses 3,900

State income tax 1,500

Federal income tax 5,600

Daniel's standard deduction for 2022 is $12,950.

What is Daniel's gross income and his AGI? Gross income: ___________ AGI: __________

b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are ___________, he would benefit from itemizing his deductions.