Lucia is a 69 year old single individual who receives a taxable pension of 10,000 per year an social security benefits of 7000. Lucia is considering the possibility of selling stock she has owned for years and using the funds to purchase a summer home She will realize a gain of 20,000 when she sells the stock, which has been half of the stock this year and half next year because selling all of the stock at once would affect the tax treatment of her social security benefits.

a. compute herAGI under the assumption she sells all of the stock now after receiving 1,000 dividends from the stock.

b. repeat the computation under the assumption she sells only half of the stock this year and also receives 1000 dividends from the stock.