Pat, who is age 66 and single with no dependents, received a salary of $90,000 in 2017. 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 2014) of $40,000. The dividends are not qualified dividends. The personal exemption is $4,050. The following additional information is relevant.

a. Compute Pat's taxable income and AMTI.

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

His tentative exemption of $__________ is ______ (Choose: Increased or Phased Out) at a rate of 25 cents on the dollar when AMTI exceeds $ ________.

If required, round amounts to the nearest dollar.

Medical expenses (before 10%-of-AGI floor State income taxes Real estate taxes Mortgage interest on residence Investment interest expense Gambling losses $12,000 4,100 2,800 3,100 1,800 5,100