5.) Use the table for the following question.

Tax Rate Single
10% Up to $8,925
15% Up to $36,250
25% Up to $87,850
28% Up to $183,250
Standard Deduction $6,100
Exemption(per person) $3,900


Malcolm is single and earned wages of $32,700. He received $120 in interest
from a savings account. He contributed $500 to a tax-deferred retirement plan. He had $4,500 in itemized deductions from interest on a mortgage. Compute the following:

A.) Gross Income =


B.) Adjusted Gross Income =

C.) Should he use itemized deductions or standard deduction when finding his taxable income? Show or explain your answer.

D.) What is his taxable income?