In the current year, Dylan 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 2013)....................... 2,000

10-year private activity bond (issued in 2014)................ 900

Savings account ...............................................................1,100

Dylan purchased all of the bonds on their issuance date. In addition, Dylan 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 Dylan recognize for regular tax purposes in the current year?

b. What is her current-year AMT preference or adjustment for interest income?