Jamari Peters (Social Security number 123-45-6789) conducts a business with the following results in 2019:

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?