Tamara Moore is an unmarried, 37-year-old taxpayer. She will use the head of household filing status, and she has the following income for the year:

• Wages: $36,500.
• Bank interest: $375.
• Municipal bond interest: $215.
• Lottery prize: $500.
• Gift from her father: $5,000.

Tamara contributed $1,500 to her traditional IRA, which she will deduct. What is her adjusted gross income?

1. $35,590
2. $35,875
3. $40,875
4. $41,090