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Hardaway earned $$125,500$ of compensation this year. He also paid $($or had paid for him$)$ $$5,000$ 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 $$5,000$ of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $$120,500$ of taxable compensation and $$5,000$ of nontaxable compensation.

Hardaway's AGI