1. Assume that in year 1 Hill Corporation reported a net operating loss of $19,200 that it carried forward to year 2. In year 1, Hill also reported a net capital loss of $4,250 that it carried forward to year 2. In year 2, ignoring any carryovers from other years, Hill reported a loss for tax purposes of $70,000. The current year loss includes a $19,500 net capital gain.

What is Hills year 2 net operating loss?

2. For the current year, CCP Inc. received the following interest income:

	$36,000 interest from Irvine City bonds: Bonds issued in 2012 and proceeds used to fund public schools.
	$44,000 interest from Fluor Corporation bonds.
	$13,300 interest from Mission Viejo City: Bonds issued in 2013 and proceeds used to lure new business to the area.
	$11,300 interest from U.S. Treasury notes.

a.	What amount of this interest income is taxable to CCP?

.	b. What amount of interest should CCP report as a preference item when calculating its alternative minimum tax liability?