Find the gross income, the adjusted gross income, and the taxable income. Base the
taxable income on the greater of a standard deduction or an itemized deduction.
Suppose your friend earned wages of $98,010, received $1310 in interest from a
savings account, and contributed $6900 to a tax-deferred retirement plan. She is
entitled to a personal exemption of $4050 and a standard deduction of $6300. The
interest on her home mortgage was $4800, she contributed $2500 to charity, and she
paid $1351 in state taxes.