1. Bobby is single with no dependents. He is 70 years old and his employed by Theta Corporation. In 2021, Theta transferred him to Macon, Georgia from Denver, Colorado. He submits the following information to you for tax year 2021. (1) Compute the gross income, adjusted gross income, taxable income, and income tax. Be sure and show your calculations. Salary $75,000 Interest on U.S. Government Bonds 5,000 Interest on Atlanta Airport Municipal Bonds 10,000 Short-term Capital Loss on sale of stock (8,000) Short-term Capital Gain on sale of stock 9,000 Life Insurance from death of Uncle Ted 500,000 Inheritance from Uncle Ted 1,000,000 Theta paid Bobby's moving expenses 10,000 Value of watch given by Theta to Bobby as a safety award 1,000 Cash Theta awarded to Bobby for his 10 years of service 500 Value of parking for twelve months, paid by company 3,600 Value of company-paid cell phone 2,400 Alimony paid to Bobby's ex-wife, divorce decree 12/31/15 12,000 Child support paid to Bobby's ex-wife 15,000 Itemized deductions 12,500 Note that Theta has a qualified plan for the safety award and recognition of service award. 1 (2) Explain what difference it will make if the capital gains and losses are long-term rather than short-term. You do not need to recompute, just explain the difference if any in the tax treatment