Alex, who is single, conducts an activity in 2016 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 $4,050.

Complete the following statements regarding the treatment of the hobby activities.

• Excluding the property taxes, his total deductible expenses (before any AGI limitations) is limited to $ _____________.
• Alex's reportable net incomefrom the hobby on his tax return is $_______________ and his overall taxable income is $_________________.

I need some help with this problem.