1) In 2012, Bobs unincorporated business has a net loss of $30,000. Bob has investment of $40,000. Itemized deductions and personal exemptions total $26,000. Thus, on his 2012 tax return, his taxable income was a negative $16,000. Bob discovered that an employee has stolen $25,000 (pocketing the proceeds from unrecorded sales) from the business. This $25,000 theft loss is included in calculating the net loss of Bobs business of $30,000. In 2013, Bob recovers the $25,000 from the former employee. How can the tax benefit rule assist Bob in 2013? Provide a very specific answer with supporting computations. 2) The taxpayers marginal tax bracket is 25%. Which would the taxpayer prefer? a) $1.00 taxable income rather than $1.00 tax-exempt income b) $0.80 tax-exempt income rather than $1.00 taxable income c) $1.25 taxable income rather than $1.00 tax-exempt income d) $1.30 taxable income rather than $1.00 tax-exempt income e) None of the above