Find the grossincome, the adjusted grossincome, and the taxable income. Base the taxable income on the greater of a standard deduction or an itemized deduction.

Suppose your friend earned wages of $96,930, received $1,350 in interest from a savingsaccount, and contributed $6,900 to atax-deferred retirement plan. She is entitled to a personal exemption of$4050 and a standard deduction of $6,300. The interest on her home mortgage was $4,600, she contributed $2,500 tocharity, and she paid $1317 in state taxes.