John is single, age 33, and informs you that he spends most of his weekends playing in a cover band. Johns income and expenses from this activity are listed below. Band Activity for 2019 CD Sales Income $18,000 Band equipment $7,000 City fines for noise violations $500 CDs and Supplies $4,000 Recording Equipment Rental $6,000 Truck Rental for Equipment $5,000 Other assumptions before considering the band activity: Assume John has no dependents, he has wage income of $55,000, and his itemized deductions before AGI limitations are $8,000 real estate taxes, $2,000 mortgage interest and $5,000 of donations to qualified charities. 1. Assuming the activity is a hobby, please calculate Johns taxable income. 2. Assuming the activity is a business, please calculate Johns taxable income.