Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses: Revenues Expenses Property taxes $18,000 3,000 Materials and supplies 4,500 Utilities Advertising 2,000 5,000 Insurance 750 Cost Recovery 8,000 2 Alex also pays mortgage interest during the year of $8000. Assume Congress passes no new tax laws between 2021 and 2026 and that there are no relevant inflation adjustments after 2021. 1. Assuming the activity is a business, Alex' 2026 AGI is $ 36750 and his taxable income (ignoring the personal exemption) is $ 2. Assuming the activity is NOT a business, Alex' 2026 AGI is $ 60000 35200 and his taxable income (ignoring the personal exemption) is $