Mr & Mrs Liddy, ages 39 & 41, file a joint return and have no dependents for the year. Here is their relevant information:

Salaries: $47,000

Taxable interest income: $5,000

Above-the-line deduction: $1,800

Itemized deductions: $16,250

Compute their AGI and taxable income.

A) AGI $50,200; taxable income $25,800

B) AGI $52,000; taxable income $35,750

C) AGI $52,000; taxable income $33,550

D) AGI $50,200; taxable income $9,950