During the current year, Yoon earned $10,000 in dividends on corporate stock and incurred $13,000 of investment interest expense related to the stock holdings. Yoon also earned $5,000 interest on private activity bonds that were issued in 2007 and incurred interest expense of $3,500 in connection with the bonds.
a. How much investment interest expense can Yoon deduct for regular income tax and AMT purposes for the year?
b. What is the AMT adjustment for these events?