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27. Taxpayer " T ", an individual, operated a bakery out of T 's house, which was determined to be a hobby by the IRS. In 2 T had bakery revenue of $5,000 and spent $2,000 on ingredients used to make the bakery goods. T also properly cale depreciation of equipment used exclusively for the bakery at $3,000. Additionally, since T used 15% of Ts house exclu a.tha haken T mmonerlv allocated 15% of the following expenses to bakery operations: Assuming T is a single 35 year old, who earns a sivu,uuv sanar, a. What is T 's AGI ? b. What is T's Taxable Income? T Corporation, an accrual basis, calendar year, taxpayer provides services to customers. Services are performed ratably (meaning equally) over the course of the year. In 2022, T sold one 12 month, one 24 month and one 36 -month contract (i.e. services to be provided over the life of the contract) for which T was pre-paid, and one 48 -month contract which was purchased on credit (not paid for immediately). Each contract contract, $48,000 for contract, and $72,000 for the 36-month contract on July 1 of 2022 , and recelized that the purchaser of the 481m for 48 months, for the 48 -month contract. On May 1 of 2024 , Treal make any payments ever. (who had not made any payments), was broke, and would if any, does T recognize in 2022? a. How much income and or deduction_, if any, does T recognize in 2023 ? b. How much income , and or deduction if any, does T recognize in 2024 ? How much income , and or deduction

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