Juanita Knits Blankets as a Hobby and Sells Them

question 129

Multiple Choice

Juanita knits blankets as a hobby and sells them.In the current year,she earns $5,000 from her blanket sales and incurs expenses of $600.Juanita does not itemize deductions.On her tax return,she should

• A)report $5,000 of hobby income and deduct $500 of hobby expenses from AGI.
• B)report $5,000 of hobby income and deduct $400 of hobby expenses for AGI.
• C)report $5,000 of hobby income and deduct nothing from AGI since Juanita does not itemize deductions.
• D)report no hobby income and no hobby deductions.

---

Definitions:

Instrumental Traits

Characteristics or qualities that facilitate achieving goals, such as assertiveness or practicality.

Androgynous

A gender expression that combines or blurs characteristics traditionally associated with both masculinity and femininity.

Traditionally Masculine Traits

Characteristics culturally associated with male identity, such as strength, independence, and assertiveness.

Normative

Relating to an established standard or norm; often used to describe behaviors or conditions that are considered typical within a specific society or group.