Irene is a resident of a state that imposes an income tax. Information regarding Irene's state income tax transactions is as follows:

Taxes withheld this year $5,400

Refund received this year from overpayment

of last year's tax liability 1,200

Deficiency assessed for two years ago

(as a result of audit by the state) 2,000

Interest on the deficiency 300

Both the two-year-old deficiency and interest thereon were paid by Irene this year. If Irene elects to itemize her deductions this year, how much of the above transactions can be claimed?

	a.	$7,700
	b.	$7,430
	c.	$7,400
	d.	$6,230
	e.	None of the above.