Juanita Knits Blankets as a Hobby and Sells Them

question 76

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 $600 of hobby expenses from AGI.
• B)report $5,000 of hobby income and deduct $600 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.

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Definitions:

Organizational Politics

The application of influence and social connections in an organization to bring about changes for the advantage of either the individual or the organization as a whole.

Organizational Politics

Leveraging authority and cultivating relationships in a company to implement changes that are favorable to the person or the company itself.

Distrust

The feeling of skepticism or lack of confidence in the reliability, truth, or ability of someone or something.

Influence Tactic

Methods or strategies used by individuals or groups to alter or control the behavior or attitudes of others.