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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
44.            Â
Alex, who is single, conducts an activity in 2015 that is appropriately classi- fied as a hobby. The activity produces the following revenues and  expenses:
|
Revenue |
$18,000 |
|
Property taxes |
3,000 |
|
Materials and supplies |
4,500 |
|
Utilities |
2,000 |
|
Advertising |
5,000 |
|
Insurance |
750 |
|
Depreciation |
4,000 |
Without regard to this activity, Alex’s AGI is $42,000. Determine the amount of income Alex must report, the amount of the expenses he is permitted to deduct, and his taxable income.
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