Terry has $3,000 of gambling winnings and $5,000 of losses. Which of the following statements about his gambling income and losses is true?

Group of answer choices

Terry's AGI is decreased by $2,000.

Terry's AGI is increased by $3,000, and his itemized deductions are increased by $5,000.

Terry's AGI is increased by $$3,000, and his itemized deductions are increased by $3,000.

Terry's AGI is not affected.