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Problem 11-37 (LO. 7) Alex, who is single, conducts an activity in 2019 that is classified...

Problem 11-37 (LO. 7)

Alex, who is single, conducts an activity in 2019 that is classified 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 hobby, Alex's AGI is $42,000.

Determine the amount of gross income that Alex must report and the amount of expenses he is permitted to deduct. Assume Alex itemizes his deductions.

Reportable income: $
Deductible expenses: $

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ekkarill92 answered 2 years ago
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