Hardaway earned $128,000 of compensation this year. He also paid (or had paid for him) $5,700 of health insurance (not through an exchange). What is Hardaway's AGI in each of the following situations? (Ignore the effects of Social Security and self-employment taxes.)

a. Hardaway is an employee, and his employer paid Hardaway's $5,700 of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $122,300 of taxable compensation and $5,700 of nontaxable compensation.