1. Henrich is a single taxpayer. In 2016, his taxable income is $425,000. What is his tax liability (including the net investment income tax) assuming he has $425,000 of taxable income which includes $50,000 of long-term capital gain that is taxed at preferential rates.

2. In 2016, Nadia has $100,000 of regular taxable income. She itemizes her deductions as follows: real property taxes of $1,500, state income taxes of $2,000, and mortgage interest expense of $10,000 (not a home equity loan). In addition, she receives tax-exempt interest of $2,000 from a municipal bond (issued in 2006) that was used to fund a new business building for a (formerly) out-of-state employer. Finally, she received a state tax refund of $400 from the prior year. What is Nadias AMTI this year if she deducted $15,000 of itemized deductions last year (she did not owe AMT last year)?