1. Megan & Jeff had the following items of income and deductions:
   1. wages, $95,000,
   2. federal withholding, $30,000,
   3. state withholding, $10,000;
   4. gambling winnings, $5000;
   5. gambling losses, $8,000;
   6. property taxes, $6,000;
   7. charitable donations, $2,000;
   8. DMV fees (deductible) $500;
   9. mortgage interest on loan to purchase home, $18,000;
   10. home equity loan interest on $30,000 loan to purchase a car, $3,000;
   11. business miles, $6,000;
   12. tax preparation fees, $1,000;
   13. Jeff exercised 1000 stock options on 9/1 when the market price of the stock was $12. His option price was $2. As of 12/31 he still owned the stock, and the price at that day was $20.

Calculate Federal taxable income and Federal alternative minimum taxable income before exemptions. Assume that the Taxpayers have no children. You do not need to compute the actual tax. Please show all work