Pat, who is age 66 and single with no dependents, received a salary of $90,000 in 2016. She earned interest income of $1,000, dividend income of $5,000, gambling winnings of $4,000, and interest income from private activity bonds (issued in 2006) of $40,000. The dividends are not qualified dividends. The following additional information is relevant. Medical expenses (before 7.5%-of-AGI floor) $12,000 State income taxes 4,100 Real estate taxes 2,800 Mortgage interest on residence 3,100 Investment interest expense 1,800 Gambling losses 5,100

a. Compute Pat's taxable income and AMTI.

Taxable Income Computation

Adjusted gross income $ ______

Taxable income $ ______

AMTI Computation Taxable income $ ______

AMTI $ ______

b. Determine if Pat's AMT exemption will be limited.

His tentative exemption of $______ is phaseout at a rate of 25 cents on the dollar when AMTI exceeds $_____. If required, round amounts to the nearest dollar.

Computation of AMT Base and Tax

AMTI $ _____

AMT exemption $ _____

AMT base $ _____

Tentative AMT $ _____