Final answer:
To calculate the AGI, you subtract adjustments from the gross income, resulting in $20,220. The taxable income is determined by subtracting deductions and exemptions from the AGI, resulting in $7,820.
Step-by-step explanation:
The question involves calculating the adjusted gross income (AGI) and the taxable income. To begin, AGI is calculated by subtracting any adjustments from the gross income. In this case, the adjustments amount to $245, so the AGI will be the gross income of $20,465 minus $245, resulting in an AGI of $20,220.
Next, to find the taxable income, we subtract the exemptions and deductions from the AGI. Given the exemption of $12,400, we subtract this from the AGI to find the taxable income: $20,220 - $12,400 equals a taxable income of $7,820.
It appears there is a typo in the provided options, given that none of them accurately reflect the correct calculations. The correct AGI is $20,220, and the correct taxable income is $7,820, which does not match any of the options provided (A, B, C, or D).