7-51: Computation of Taxable Income. During 2013, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses $8,000 Investment interest expense 16,000 Other investment activity expenses 15,000 Qualified residence interest 12,000 Interest on loan on personal auto 2,000 Charitable contributions 3,000 State income taxes paid 7,000 State sales tax paid 4,500 Property taxes 4,000 Tax preparation and consulting fees 5,000 James income consisted of the following items: Salary $70,000 Interest income 20,000 Long-term capital gains 23,000 Long-term capital losses (15,000) a. Compute James taxable income for the year (assuming that he makes an election to have the net capital gain taxed at the regular tax rates). Also assume James is 67 years old. Thus, his medical expense deduction is subject to the 7.5% rather than the 10% limit. b. What is James investment interest carryover (if any)