Fred and Wilma are married and each aged 67 years, with no dependents. Their income and expenses are listed below. Compute their tentative minimum tax for 2019 showing ALL calculations. Also, please find and print the IRC subsection that describes the AMT exemption amounts.

Salaries $150,000

Interest Income State Bank 1,500

Interest Income private activity bonds (issued 2013) 20,000

Gambling income 3,000

Dividend income (not qualified dividends) 2,000

Medical expenses (before AGI floor) 16,000

Gambling losses 6.000

State income taxes 3,500

Mortgage interest on home 4,600

Investment interest expense 2,100

Real estate taxes 3,200

Assume it is 4/15/20. Your friend, Bob, recently lost his corporate job. He got a job at McDonald's. He also started his own business which has done quite well. He has continued to work at the local McDonald's because he enjoys it. Bob knew he needed to make estimated tax payments for his business, in addition to the withholding on his McDonald's pay. He made the following federal tax payments: 4/15/19 6/16/19 9/15/19 1/15/20_ $1,000 500 500 5,000 Bob fears he is going to owe underpayment penalties. He has asked you to compute the amount of the underpayment (not the actual penalty) for him. Bob provides the following, relevant information: 2018 taxes paid 2019 taxes calculated Total withholding $15,000 17,500 5,000 Compute the underpayment amount for EACH quarter and the period upon which the penalty will be computed. Note: Bob's AGI is $98,000. ALSO find and print the IRC section that describes the overpayment and underpayment penalty interest rates. You DO NOT need to calculate the interest Bob must pay! (SHOW ALL calculations for full credit). Assume it is 4/15/20. Your friend, Bob, recently lost his corporate job. He got a job at McDonald's. He also started his own business which has done quite well. He has continued to work at the local McDonald's because he enjoys it. Bob knew he needed to make estimated tax payments for his business, in addition to the withholding on his McDonald's pay. He made the following federal tax payments: 4/15/19 6/16/19 9/15/19 1/15/20_ $1,000 500 500 5,000 Bob fears he is going to owe underpayment penalties. He has asked you to compute the amount of the underpayment (not the actual penalty) for him. Bob provides the following, relevant information: 2018 taxes paid 2019 taxes calculated Total withholding $15,000 17,500 5,000 Compute the underpayment amount for EACH quarter and the period upon which the penalty will be computed. Note: Bob's AGI is $98,000. ALSO find and print the IRC section that describes the overpayment and underpayment penalty interest rates. You DO NOT need to calculate the interest Bob must pay! (SHOW ALL calculations for full credit)