Eric, who is single, participates in an activity that is appropriately classified as a hobby. The activity produces the following revenue and expenses:

Revenue	$	12,000
Property taxes		2,000
Materials and supplies		4,000
Utilities		1,500
Advertising		1,900
Insurance		775
Depreciation		5,000

Without regard to this activity, Erics AGI is $55,000. Determine how much income Eric must report, the amount of the expenses he is permitted to deduct, and his AGI:

A. Hobby income reported as part of the AGI = $12,000

B. Total of expenses that qualify as miscellaneous itemized deductions = ___________

C. Total AGI = $67,000

I need assistance with question B.