1.James and Jane filed a joint return in 2019. They calculate their taxable income to be $150,000 and regular tax to be $33,000. Assume that:

Their AMT adjustments to taxable income$20,000

Their total of tax preference items$30,000

AMT exemption $111,700

The AMT tax rate:

26% of alternative minimum taxable income (AMTI) up to $194,800 for all taxpayers ($97,400 for married taxpayers filing separately)

and 28% of AMTI exceeding that amount

a.What is their alternative minimum taxable income (AMTI) after AMT exemption?

b.What is their tentative minimum tax?

c.What is the amount of tax they must pay in 2019?