Paul is single, age 63, and has gross income of $70,000. His deductible expenses are as follows:
Alimony $15,000
Charitable contributions 2,000
Contribution to a traditional IRA 5,000
Expenses paid on rental property 7,500
Interest on home mortgage and property taxes on personal residence 6,800
State income tax 2,200
What is Paul's AGI?
a) $31,500.
b) $42,500.
c) $47,500.
d) $50,000.