Alex, who is single, conducts an activity in 2014 that is appropriately 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 activity, Alex's AGI is $42,000 and his personal exemption is $3,950.

Enter the amount of net income Alex must report from the hobby activity, the amount of the other expenses after any AGI limitation he is permitted to deduct, and his taxable income.