$49.$ Assume all the same facts as in Problem I:$8-48($During $2023,$ James, a single, cash method taxpayer

incurred the following expenditures:

Qualified medical expenses $ $8,000$

Investment interest expense $16,000$

Other investment activity expenses $15,000$

Qualified residence interest $12,000$

Interest on loan on personal auto $2,000$

Charitable contributions $3,000$

State income tax paid $7,000$

State sales tax paid $4,500$

Property taxes $4,000$

Tax return preparation and consulting fees $5,000$

James$$ income consisted of the following items:

Salary $$70,000$

Interest income $7,000$

Long$-$term capital gains $23,000$

Long$-$term capital losses $(15,000)$

a$.$ Compute James$$ taxable income for the year $($assuming that he makes an election to

have the net capital gain taxed at the regular tax rates$).$

b$.$ What is James$$ investment interest carryover $($if any$)?)$ except that James$$ salary income is $$130,000$ instead of $$70,000$ and that he does not make the election. Compute James$$ taxable income for the year