Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,596 in self-employment tax on her salon income, with $1,298 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.

Interest income $ 14,045

Salon sales and revenue 88,160

Salaries paid to beauticians 46,210

Beauty salon supplies 23,580

Alimony paid to her ex-husband, Rocky 6,900

Rental revenue from apartment building 34,460

Depreciation on apartment building 13,800

Real estate taxes paid on apartment building 11,820

Real estate taxes paid on personal residence 6,763

Contributions to charity 4,831

Determine Betty's AGI