Problem 6-43 (LO. 3) Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was $52,000. He incurred the expenses in June and July 2021. Under the following circumstances, what can Terry deduct in 2021? In your computations, round the per month amount to two decimal places and use rounded amount in subsequent computations. If required, round your final answers to the nearest dollar. If an amount is zero, "0". a. Terry was in the hardware store business and did not acquire the two hardware stores. b. Terry was in the hardware store business and acquired the two hardware stores and began operating them on October 1, 2021. $ c. Terry did not acquire the two hardware stores and was not in the hardware store business. d. Terry acquired the two hardware stores but was not in the hardware store business when he acquired them. Operations began on October 1, 2021. Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income: $ Deductible expenses: $ Problem 6-44 (LO. 3) Jamari conducts a business with the following results in 2021: Revenue $20,000 Depreciation on car 3,960 Operating expenses of car 3,100 Rent 6,000 Wages 8,200 Amortization of intangibles 680 Jamari estimates that due to a depressed real estate market, the value of land owned by the business declined by $5,200. a. Calculate the effect of Jamari's business on his AGI. Jamari's business has a of $ which is reported on his tax return. b. How would your answer in part (a) change if the activity was a hobby? If the activity was a hobby, Jamari will report as income. Of his expenses, are deductible on his tax return