Dr. Herrera, a single individual, had gross income of $139,000, adjusted gross income of $72,000, and taxable income of $25,500. Her regular income tax liability was $2,943.

She had adjustments to taxable income of $12,000 (state and local taxes) and tax preferences of $79,000.

1. Using the provided information, calculate Dr. Herrera's tax liability. Be sure to show any calculations in your answer.

10.1.3

Single Regular Tax Rate Schedule Taxable Income: Tax Liability: Over- But not over- Of amount over - SO $9,700 10% $0 $9,700 $39,475 $970.00 + + + 12% $9,700 $39,475 $84,200 $4,543.00 + 22% $39,475 $84,200 $160,725 $14,382.50 + 24% $84,200 $160,725 $204,100 $32,748.50 + 32% $160,725 $204,100 $510,300 $46,628.50 + 35% $204,100 $510,300 $153,798.50 + 37% $510,300 Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Tentative Minimum Tax: Over - But not over- Of amount over - SO $197,900 26% $0 $197,900 $51,454.00 + + 28% $197,900 Alternative Minimum Tax (AMT) Exemption Amount for Single Taxpayer: Exemption Exemption Phase-out Begins at AMTI Exemption Phase-out Complete at AMTI $72,900 $518,400 $810,000 Exemption is phased out by 25 cents for every dollar that AMTI exceeds the threshold amount