7 (A). Barett, an attorney, earns $125,000 from her law practice in the current year. In addition, she receives $50,000 in dividends and interest during the year. Further, she incurs a loss of $40,000 from an investment in a passive activity.

What is Baretts AGI for the year after considering the passive investment?

7 (B). John is single and age 56, has AGI of $265,000, and incurs the following expenditures in 2018. Medical expenses (before 7.5%-of-AGI floor) $27,000 Interest on home mortgage 15,500 State income tax 7,500 State sales tax 4,500 Real estate tax 8,600 Charitable contribution 6,500

What is the amount of itemized deductions John may claim?