Renee and Sanjeev Patel, who are married report taxable income of $273,000. They computed positive AMT adjustments of $38,000, negative AMT adjustments of $14,000, and AMT preference items of $67,500. Assume the Patels itemize their deductions.

a. Compute the Patels' alternative minimum taxable income (AMTI).

Taxable income (before exemptions)
Plus: positive AMT adjustments
Less: negative AMT adjustments
Plus: preference items
Equals: AMTI	$

TAXABLE INCOME IS NOT $273,000

AMT EXEMPTION IS NOT $33,600

b. Will Renee and Sanjeev's AMT exemption be limited?

Their tentative exemption of $ is phased out at a rate of 25 cents on the dollar when AMTI exceeds $. As a result, their AMT exemption is $.

When computing their tentative minimum tax, the first $187,800 of AMTI will be taxed at %, and any excess over $187,800 will be taxed at %. Therefore, the total tentative minimum tax is $.