Problem 11-37 (LO. 7) Alex, who is single, conducts an activity in 2019 that is classified as a hobby. The activity produces the following revenues and expenses. Revenue Property taxes $18,000 3,000 4,500 2,000 Materials and supplies Utilities Advertising 5,000 Insurance 750 4,000 Depreciation Without regard to this hobby, Alex's AGI is $42,000. Determine the amount of gross income that Alex must report and the amount of expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income: $ Deductible expenses: $