Problem 17-33 (LO. 5) In the current year, DYL Corporation earned taxable and tax-exempt interest from the following investments. Investment Interest Income 10-year municipal bond (issued in 2009) $1,300 10-year private activity bond (issued in 2010) 1,600 10-year Treasury bond (issued in 2014) 2,000 10-year private activity bond (issued in 2015) 900 Savings account 1,100 DYL Corporation purchased all of the bonds on their issuance date. In addition, DYL Corporation borrowed funds with which to purchase the 2010 private activity bond and incurred interest expense of $350 on that loan in the current year. a. How much interest income will DYL Corporation recognize for regular tax purposes in the current year? $ 3,100 b. What is its current year AMT preference or adjustment for interest? $ 2,150 Feedback In general, private activity bonds are bonds issued by states or municipalities with more than 10 percent of the proceeds being used for private business use.