7. In 2020, Carla Cox operates an activity deemed to be a hobby by the Internal Revenue Service. Carla generates revenues of $50,000 and ordinary and necessary expenses of $70,000. How should Carla report the activity on her 2020 Form 1040? A. Gross Income of $50,000; zero deduction B. Net loss of $20,000 Gross Income of $50,000; $50,000 deduction for AGI D Gross income of $50,000; itemized deduction of $50,000 E. None of the above