Jamari Peters (Social Security number 123-45-6789) conducts a business with the following results in 2018:

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?