Gabriel, age 40, and Emma, age 33, are married with two dependents. They recorded AGI of $250,000 in 2020 that included net investment income of $3,000 and gambling winnings of $2,500. The couple incurred the following expenses during the year (all of which resulted in itemized deductions for regular income tax purposes). Medical expenses (before 7.5%-of-AGI floor) State income taxes $12,000 5,800 9,100 18,600 Real estate tax Interest on personal residence Interest on home equity loan (proceeds were used to remodel the couple's kitchen) 9,800 Investment interest expense 4,500 Charitable contributions (cash) 14,200 If an amount is zero, enter "0". a. Enter Gabriel and Emma's regular income tax itemized deductions; AMT itemized deductions; the net amount of adjustments (if any) and if the adjustment is a positive or negative adjustment. AMT Regular Income Tax Amount of Adjustment Positive, Negative, or None Purposes Medical expenses 0 0 0 None State income and 10,000 V 0 10,000 Positive real estate taxes Interest on residence 18,600 18,600 0 None Interest (home equity) 9,800 9,800 0 None Investment interest 3,000 3,000 o None Charitable contributions 14,200 14,200 0 None Totals $ 55,600 ~ $ 45,600 V 10,000 V Positive Feedback b. Gabriel and Emma also earned interest of $5,000 on private activity bonds that were issued in 2015. They borrowed money to buy these bonds and paid interest of $3,900 on the loan. What is the effect on AMTI? The effect of this transaction is a tax preference of $ 1,100 V. However, considering the transactions in part (a) as well as the transaction above, the taxpayers will have a positive total AMT adjustment of $ 10,000 X