7. Betty is age 34 and has AGI of $50,000 and regular taxable income of $35,000. The following items may qualify as itemized deductions for Betty:

Qualified medical expenses (before percentage of AGI floor) $3,000 Real estate tax 1,200 State income tax 800 Charitable contributions 600 Mortgage interest on acquisition indebtedness 2,000 Home equity interest on a loan used to improve the home 300 What is the alternative minimum taxable income (AMTI)?

a. $35,000

b. $37,500

c. $37,000

d. $52,800