Problem 6-26 The Individual Alternative Minimum Tax (AMT) (LO 6.9)

Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $80,300. They have excess depreciation on real estate of $67,500, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $25,000, and they made charitable contributions of $7,500. They have no other itemized deductions.

If Otto and Monica's taxable income for the current year is $39,700, determine the amount of their AMTI.