Jamari Peters (Social Security number 123-45-6789) 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.

b. How would your answer in part (a) change if the activity was a hobby?