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.

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Definitions:

Poorly Planned Visuals

Visual elements that are not effectively designed or integrated, potentially leading to confusion or misunderstanding.

Grammatical Errors

Mistakes in the use of language rules that can affect the clarity and professionalism of written communication.

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