1. Luke opened a new business on August 4 this year that he is operating as a sole proprietorship. He reported the following:

• $18,650 in training, utilities, rent before he opened for business
• $3,500 in rent expense on his business building
• $1,300 in utilities for the building
• $86,450 in revenue
• $2,100 on a new copy machine for use in the business. It was placed in service Nov 1, 2021.

Luke also owns an apartment building which he paid $270,000 for in 2019. He collected $30,500 in rent during 2021. He paid $3,700 in real estate taxes on the building and $1,200 for a one year insurance policy.

Lukes real estate taxes on his personal residence were $2,400. He contributed $1,000 to a charity.

Calculate Lukes AGI. He does not want to elect 179 or bonus.