Problem 6-45 (b) (LO. 3) Pierre makes birdhouses in his spare time. He earned $4,800 selling the birdhouses during the year and incurred expenses as follows: Supplies $3,500 Depreciation on tools 975 Booth rental at craft fairs 300 Vendor registration fee for art festival 100 Total $4,875 His AGI, without considering the effect of the sales of the birdhouses, is $31,000. If an amount is zero, enter "O". Calculate the following if the activity is A hobby: AGI Deductible expenses A business Il II AGI Deductible expenses