Roberta, a single taxpayer, is a practicing accountant. She obtains permission to change her tax year from the calendar year to a year ending July 31. Her practice income for the seven months ending July 31 is $40,000. In addition, Roberta has $3,000 of interest income and $6,250 of itemized deductions. She is entitled to one exemption.

Compute her modified taxable income

Gross income -

Minus: Itemized Deductions -

Exemption -

Modified taxable income -

The annualized taxable income -