Jacob, age 42, and Jane Brewster, age 44, are married and file a joint return in 2020 The Brewsters have two dependent children, Lukas and Alexa, 14 year old twins Unless otherwise noted, all of the income and expense amounts in the problem relate to the 2020 tax year Jacob works as a data analyst he earned $155,000 Jane is a computer systems analyst she earned $160,000 In addition to their salaries, they recorded the following items of income Interest income (Carmel Sanitation District Bonds) 22,000 (a) Interest income (Carmel National Bank) 8,500 Qualified dividend income (Able Computer Corporation) 12 12,000 Gambling winnings 6,500 Inheritance (cash) received by Jane 35,000 (b) Citizen of the Year award (Jane) 10,000 (c) Gain on land sale 34,000 (d) The Carmel Sanitation District Bonds are private activity bonds and were originally issued in April 2016 Jane's elderly uncle passed away early in the year The executor divided his estate among his eight nieces and nephews The $35,000 is Jane's share of the estate Jane was selected Citizen of the Year by the Carmel City Council She used the award proceeds to pay down the family's credit card debt The Brewsters sold five acres of land to a real estate developer on October 12 for $120,000 They had acquired the land on May 15, 2010, for $86,000 On April 1, Jane exercised an incentive stock option granted by her employer At the date of exercise, the fair market value of the stock was $18 per share and the exercise price was $10 per share Jane purchased 500 shares with the ISO exercise As of December 31, the stock's fair market value was $25 per share The Brewsters incurred the following expenses during the year Charitable contributions (cash) $ 9,500 (e) Gambling losses 6,800 Investment interest expense 3,500 Mortgage interestpersonal residence (reported on Form 1098) 8,600 Mortgage interesthome equity loan 1,800 (f) Real property tax on personal residence 8,100 Supplies, professional organization memberships, continuing education for Jacob and Jane's work 15,800 In addition to their cash charitable contributions, the Brewsters contributed stock in Ace Corporation, which they acquired on February 9, 2006, at a cost of $6,500, to the Carmel Salvation Army, a qualifying charity The fair market value of the stock was $11,000 on November 1, the date of the contribution The home equity loan was used to purchase the family's new minivan Taking into consideration the above amounts, the Brewsters' AGI is $386,000 and their taxable income is $338,800 The following is a first draft of the Brewsters' 2020 AMTI calculation Table income prior to standard deduction $363,600 Adjustment and preferences Citizen of the year award (10,000) Real property taxes (10,000) Home equity interest 1,800 Charitable contribution of stock (difference between basis and FMV 4,500 Incentive stock option exercise 7,500 Gambling loss disallowed for regular tax purposes (300) MID Supplies, professional organization membership, etc 4,220 AMTI $361,320 Exemption amount (72,900) AMTI base 288,420 Review the AMTI calculation, and prepare a list, including explanations, of any errors in the calculation An error could include a missing amount or an amount that should not have been included, an amount that enters the calculation in the wrong direction, or a figure that enters the calculation in the wrong amount You can presume that the Brewsters' AGI and taxable income amounts for the year are calculated correctly

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Jacob, age 42, and Jane Brewster, age 44, are married and file a joint return in 2020. The Brewsters have two dependent children, Lukas and

Jacob, age 42, and Jane Brewster, age 44, are married and file a joint return in 2020. The Brewsters have two dependent children, Lukas and Alexa, 14-year-old twins. Unless otherwise noted, all of the income and expense amounts in the problem relate to the 2020 tax year.

Jacob works as a data analyst; he earned $155,000. Jane is a computer systems analyst; she earned $160,000. In addition to their salaries, they recorded the following items of income.

Interest income (Carmel Sanitation District Bonds)	22,000	(a)
Interest income (Carmel National Bank)	8,500
Qualified dividend income (Able Computer Corporation) 12	12,000
Gambling winnings	6,500
Inheritance (cash) received by Jane	35,000	(b)
"Citizen of the Year" award (Jane)	10,000	(c)
Gain on land sale	34,000	(d)

The Carmel Sanitation District Bonds are private activity bonds and were originally issued in April 2016.
Jane's elderly uncle passed away early in the year. The executor divided his estate among his eight nieces and nephews. The $35,000 is Jane's share of the estate.
Jane was selected "Citizen of the Year" by the Carmel City Council. She used the award proceeds to pay down the family's credit card debt.
The Brewsters sold five acres of land to a real estate developer on October 12 for $120,000. They had acquired the land on May 15, 2010, for $86,000.

On April 1, Jane exercised an incentive stock option granted by her employer. At the date of exercise, the fair market value of the stock was $18 per share and the exercise price was $10 per share. Jane purchased 500 shares with the ISO exercise. As of December 31, the stock's fair market value was $25 per share.

The Brewsters incurred the following expenses during the year.

Charitable contributions (cash)	$ 9,500	(e)
Gambling losses	6,800
Investment interest expense	3,500
Mortgage interestpersonal residence (reported on Form 1098)	8,600
Mortgage interesthome equity loan	1,800	(f)
Real property tax on personal residence	8,100
Supplies, professional organization memberships, continuing education for Jacob and Jane's work	15,800

In addition to their cash charitable contributions, the Brewsters contributed stock in Ace Corporation, which they acquired on February 9, 2006, at a cost of $6,500, to the Carmel Salvation Army, a qualifying charity. The fair market value of the stock was $11,000 on November 1, the date of the contribution.
The home equity loan was used to purchase the family's new minivan.

Taking into consideration the above amounts, the Brewsters' AGI is $386,000 and their taxable income is $338,800.

The following is a first draft of the Brewsters' 2020 AMTI calculation.

Table income prior to standard deduction	$363,600
Adjustment and preferences
Citizen of the year award	(10,000)
Real property taxes	(10,000)
Home equity interest	1,800
Charitable contribution of stock (difference between basis and FMV	4,500
Incentive stock option exercise	7,500
Gambling loss disallowed for regular tax purposes	(300)
MID - Supplies, professional organization membership, etc.	4,220
AMTI	$361,320
Exemption amount	(72,900)
AMTI base	288,420

Review the AMTI calculation, and prepare a list, including explanations, of any errors in the calculation. An error could include a missing amount or an amount that should not have been included, an amount that enters the calculation in the wrong direction, or a figure that enters the calculation in the wrong amount. You can presume that the Brewsters' AGI and taxable income amounts for the year are calculated correctly.