Question: Alan makes macrame animals in his spare time. He sold $9,000 worth of macrame animals during the year and incurred the following related expenses.

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Alan makes macrame animals in his spare time. He sold $9,000 worth of macrame animals during the year and incurred the following related expenses. Supplies Depreciation on business property Advertising His AGI, before considering the macrame animal activity, is $100K. 6,000 4,000 2,000 Assume the macrame activity is treated as a business. Identify which of Alan's macrame expenses would be deductible, specify where, and calculate the total amount of the deduction. Calculate Alan's AGI if the macrame activity is treated as a business.

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