27. Taxpayer "T", an individual, operated a bakery out of T's house, which was determined to be a hobby by the IRS. In 2 T had bakery revenue of $5,000 and spent $2,000 on ingredients used to make the bakery goods. T also properly calet depreciation of equipment used exclusively for the bakery at $3,000. Additionally, since T used 15% of T's house exclu for the bakery, T properly allocated 15% of the following expenses to bakery operations: ITEM EXPENSE Mortgage Interest Real Estate Tax 15% Allocated to Bakery $1,500 $1,200 85% Allocated to Personal $8,500 $6.800 TOTAL $10,000 $8,000 Electricity $4,000 $600 $3.400 Assuming T is a single 35 year old, who carns a $100,000 salary, and has no other transactions during the year. a. What is T's AGI? b. What is T's Taxable Income? pre performed