Question 7 of 25 Gretchen made 56,750 last year. She paid 1,200 in student loan interest and made a 3,000 contribution to her IRA.On her federal tax return, she will claim 56,750 to be her: A. Taxable income B. AGI C. Gross income D. Standard deduction

To determine the correct answer, we need to understand the definitions of the terms provided in the options.A. Taxable income: This is the amount of income that is subject to taxation after deductions and exemptions are applied.B. AGI (Adjusted Gross Income): This is the gross income minus certain adjustments, such as student loan interest and IRA contributions.C. Gross This is the total income earned before any deductions or adjustments are applied.D. Standard deduction: This is a fixed amount that can be deducted from gross income to reduce taxable income.In this case, Gretchen made 1,200 in student loan interest and made a 56,750Student loan interest: - 3,000AGI: 1,200 - 52,550Therefore, the correct answer is B. AGI.