Wally, single and age 42, has the following items of income and expense for the current tax year (2019).

Wages: $60,000

Interest: $1,000

Inheritance: $50,000

Alimony paid: $10,000 (2016 divorce decree)

Child support paid: $8,000

Federal taxes paid: $5,000

State taxes paid: $2,000

Medical expenses: $7,500

What is his taxable income?

a. $29,300.

b. $31,800.

c. $38,800.

d. $48,800.