1.Marc, age 67, is a single taxpayer. In 2021, he received $200,000 of interest income from an investment in city of Houston bonds and $20,000 of social security benefits. He also incurred $13,000 of itemized deductions. What is Marc's taxable income for 2021?

2. jackson has the choice to invest in one of two bonds with similar maturities and risk. The first alternative is to invest in city of Houston bonds paying 5.1 percent annual interest. The second alternative is to invest in corporate bonds paying 7.5 percent annual interest. If Jackson has no tax preference for either bond, what is his marginal tax rate?