Eliza is a teacher, 45, not blind, whose filing status is married filing separately, operates a small tailoring business in her spare time. In 2017, she reported the following income and expenses.

Revenue from sale of tailoring $12,500

Depreciation on sewing machine (2,800)

Property taxes on studio (3,550)

Supplies used. (6,000)

Her had salary of $40,000 and itemized deductions, not including any listed above, of $4,975.

A) If her business is which is classified as a hobby what is the amount of Elizas taxable income in 2017?

B) If her business is which is classified as a trade or business what is the amount of Elizas taxable income in 2017?