1. Alternative Minimum Tax-Computation. B is single and reports the following items of income and deductions for the current year (before limitations): .......... Salary ....... .$550,000 Net short-term capital gain on sale of investment property ... .. 200,000 Interest income............................................................................. ..8,500 Qualifying dividend income...............................................................11,750 Medical expenses .................................................17,500 Casualty loss ..................... State and local income taxes ........ 45,000 Real estate taxes. ................ ... 20,000 Charitable contributions (all cash) ......... .. 25,000 Interest on home mortgage ......................... .22,000 Investment interest expense....... .....20,000 .........14,500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The only additional transaction during the year was the exercise of an incentive stock option of her employer's stock at an option price of $12,000 when the stock was worth $200,000. Compute Bs regular tax liability and AMT, if applicable for 2018 only