Response to the following problem:
David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000.00.
Other information follows: Income from consulting business $4000.00
Consulting expenses other than home office $1500.00
Total costs relating to home:
Interest and taxes $6500.00
Utilities $1500.00
Maintenance and repairs $ 450.00
Depreciation (business part only) $1500.00
Calculate Davids AGI.