Gabriel, age 40, and Edith, age 33, are married with two dependents. They reported AGI of $110,000 in 2013 that included net investment income of $10,000 and gambling income of $2,500.

They incurred the following expenses during the year, all of which resulted in itemized deductions for regular income tax purposes.

Medical expenses (before AGI floor).....................................$13,000

State income taxes (sales tax option not chosen)...........................2,800

Personal property tax.............................................................900

Real estate tax...................................................................9,100

Interest on personal residence.................................................8,600

Interest on home equity loan (proceeds were used to buy a

new fishing boat) ..............................................................1,800

Investment interest expense...................................................2,600

Charitable contribution (cash) ................................................4,200

Unreimbursed employee expenses (before 2%-of-AGI floor)............3,800

a. What is Gabriel and Edith's AMT adjustment for itemized deductions in 2013? Is it positive or negative?

b. Assume the same facts as above, and assume that Gabriel and Edith also earned interest of $5,000 on private activity bonds that were issued in 2012. They borrowed money to buy these bonds and paid interest of $3,900 on the loan. Determine the effects of these amounts on AMTI.