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How much interest income will Dylan recognize

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Reference no: EM132670126

Problem - In the current year, Dylan earned 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 2016)

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.

Required -

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?

Reference no: EM132670126

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