Question: During the current year, Paul, a single taxpayer, reported the following items: Salary $75,000 Interest on original loan incurred to purchase home 14,000 Taxes on

During the current year, Paul, a single taxpayer, reported the following items:

Salary $75,000

Interest on original loan incurred to purchase home 14,000

Taxes on home 3,500

Revenue from hobby 5,000

Interest on home equity loan incurred to purchase hobby assets 800

Expenses of hobby 8,500

Compute Paul's taxable income for the year.

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