Hardaway earned $$105,000$ of compensation this year. He also paid $($or had paid for him$)$ $$7,450$ of health insurance $($not through an exchange$).$

What is Hardaway's AGI in each of the following situations? $($Ignore the effects of Social Security and self$-$employment taxes.$)$

a$.$ Hardaway is an employee, and his employer paid Hardaway's $$7,450$ of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $$97,550$ of taxable compensation and $$7,450$ of nontaxable compensation.