Trevor, a friend of yours from highschool, works as a server at the ST Cafe. He asks you to help him prepare his Federal income tax return. When you inquire about why his bank deposits substantially exceed his tip income, he confides in you that he is a bookie on the side. Trevor then provides you with the following documented income and expenses for the year:

Tip income. 16,000 Gambling income. 52,000 Gambling Expenses payouts to winners. 29,000 employee compensation 8000 bribe to a police officer who is aware of Trevor's bookie activity. 7500

a.) How will the items affect Trevor's AGI (ignore the impact of self employment taxes)?

b.) His taxable income? (ignore the impact of self employment taxes)