Choose the answer with explanation: Question 39) Taxable income for an individual is defined as A) AGI reduced by itemized deductions. B) AGI reduced by personal and dependency exemptions. C) total income reduced by the standard deduction. D) AGI reduced by deductions from AGI and personal and dependency exemptions. 40) All of the following items are generally excluded from income except A) child support payments. B) interest on corporate bonds. C) interest on state and local government bonds. D) life insurance proceeds paid by reason of death. 41) All of the following items are included in gross income except A) alimony received. B) rent income. C) interest earned on a bank account. D) child support payments received. 42) All of the following items are deductions for adjusted gross income except A) alimony paid. B) trade or business expenses. C) rent and royalty expenses. D) state and local income taxes. 43) All of the following items are deductions for (not from) adjusted gross income except A) moving expenses. B) unreimbursed employee business expenses. C) qualifying contributions to individual retirement accounts. D) one-half of self-employment taxes paid. 44) Which of the following credits is considered a refundable credit? A) child and dependent care credit B) earned income credit C) adoption expense credit D) lifetime learning credit