Answer the following questions and explain.

1.) If a taxpayer in the 32% tax bracket has the opportunity to invest in a taxable corporate bond that pays 4.8% interest or to invest in a tax-exempt municipal bond that pays 3% interest (assuming that all other elements of the two bonds, e.g., risk, are equal), which investment would generate the greater after-tax yield?

2.) Jake and Janice are a married couple with two dependent children. In 2019, their salaries totaled $130,000, and they suffered a capital loss of $8,000. They also received $1,000 of tax exempt interest. They paid home mortgage interest of $10,000, state income taxes of $4,000, and medical expenses of $3,000. They also contributed $5,000 to charity. On their 2019 Married Filing Joint tax return what is their (a) adjusted gross income; (b) their total itemized deductions; (c) the amount of their exemptions; and (d) their taxable income.