For 2019 Annita has gross income of $100,000 and deduction of $160,000 for regular tax purposes.

1. What are the tax consequences to Annita in the current year?

2. Would the result have any impact on Annita’s tax liability in the prior year if it had taxable income in that year of $50,000?

3. Suppose that for the following year Annita has taxable income from all activities in that year of 30,000. Assume the tax rate is a flat 21% of taxable income. How much federal tax will Bagco pay in that year?