Question: In the current year, Dylan earned interest from the following investments. Investment 10-year municipal bond (issued in 2009) 10-year private activity bond (issued in 2010)

In the current year, Dylan earned interest from the following investments. Investment 10-year municipal bond (issued in 2009) 10-year private activity bond (issued in 2010) 10-year Treasury bond (issued in 2014) 10-year private activity bond (issued in 2016) Savings account Interest Income $1,300 1,600 2,000 900 1,100 Dylan purchased all of the bonds on their issuance date. In addition, Dylan bor-rowed funds with which to purchase the 2010 private activity bond and incurred interest expense of $350 on that loan in the current year. 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?

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