Hardaway earned $115,500 of compensation this year. He also paid (or had paid for him) $3,050 of health insurance (not through an exchange). Ignoring the effects of Social Security and self-employment taxes, what is Hardaways AGI in each of the following situations?

a. Hardaway is an employee, and his employer paid Hardaways $3,050 of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $112,450 of taxable compensation and $3,050 of nontaxable compensation.

b.Hardaway is a self-employed taxpayer, and he paid $3,050 of health insurance himself. He is not eligible to participate in an employer-sponsored plan.