Miki, who is single and 57 years old, has a qualifying high-deductible insurance plan. She had the following transactions with her HSA during the year:

Contributions to her HSA	$3,500
Interest income earned on her HSA	9
Medical expenses paid from her HSA	5,739
HSA distribution to pay for her daughters wedding	7,650

a. How much may Miki claim as a deduction for adjusted gross income? b. What is the amount that Miki must report on her federal income tax return as income from her HSA? c. How much is subject to a penalty? What is the penalty percentage?