Final answer:
Marvin's adjusted gross income (AGI) is calculated by subtracting deductible alimony paid from his salary, resulting in an AGI of $44,000, which corresponds to option E.
Step-by-step explanation:
The student's question revolves around calculating Marvin's adjusted gross income (AGI) for the year 2016. To determine Marvin's AGI, one must look at the types of income and deductions allowable by the Internal Revenue Service (IRS). In this case, Marvin's salary of $50,000 is considered taxable income. The bank loan is not income and thus not included in AGI calculations. Alimony paid of $6,000 is deductible for tax years prior to 2019. Child support paid is not deductible and should not be included in AGI calculations. Gifts, such as the one from Marvin's aunt, are not considered taxable income.
Therefore, Marvin's AGI can be calculated as follows: Salary ($50,000) - Alimony Paid ($6,000) = AGI of $44,000.
Marvin's AGI would be option E: $44,000.