Teresa works at Zippy, Inc. She fell and broke her arm while at work this year, so she had workers compensation benefits for one month while she was out of work. Zippy has a cafeteria plan for employee benefits which allows the employee to choose up to $10,000 of benefits. Teresa selected only the health insurance and received the remainder in cash. Teresa selected the reported the following items to you. Wages 38,500 Gift from grandfather 5,000 Workers compensation 3,500 80% health insurance 7,500 Cash from cafeteria plan 2,500 Lottery winnings 800 Cost of lottery ticket 10 What is Teresa's AGI