Clarabelle Cow uses the filing status of head of household. She has two dependent children (both under the age of 17) and she retired from the fire department during the year.

She had the following items of income and expense for 2020:

Salary, prior to retirement	83,000
Interest income from Bank of Albuquerque	7,100
Interest income from State of California bonds	6,800
Pension (use a 42% exclusion ratio)	12,000
Qualified dividends from AT & T	4,125
Child support received	7,000
Income from illegal activities	3,850
Unemployment compensation	1,940
Lottery winnings!	2,200
Long-term capital loss	(4,100)
Personal loan from his parents	9,050
Itemized deductions	17,875

a. What is Clarabelles Adjusted Gross Income for 2020?

b. What is Clarabelles tax liability for 2020?

(Hint! Dont forget that qualified dividends are taxed at a lower rate!)