1) Kristal is single and claims one exemption. Last year she earned $37,800 in wages. Additional tax information for the year is as follows: Interest earned: $128; capital gains from sale of stock: $1,850; alimony paid: $6,400; contributions to IRA retirement fund: $2,700; real estate taxes paid: $1,600; mortgage interest paid: $5,300. Find the taxable income for the year.

2) Kerri is single and claims two exemptions. Last year she earned $48,800 in wages. Additional tax information for the year is as follows: interest earned: $229; capital gains from sale of stock: $2,650; penalty on early withdrawal of savings: $400; contributions to Keough retirement fund: $1,500; real estate taxes paid: $4,500; mortgage interest paid: $4,200. Find the taxable income for the year.

Please explain. Thank you