Question
Henrietta is a photographer. She has the following income and expenses from her photo studio. Sales of photographs: $2000 Expenses: Camera Equipment: $3000 Supplies: 500
Henrietta is a photographer. She has the following income and expenses from her photo studio. Sales of photographs: $2000 Expenses: Camera Equipment: $3000 Supplies: 500 Rental of equipment 700 Which of the following is true: Select one:
a. If Henrietta is engaged in a Hobby she reports $2000 income and can deduct $2000 FOR AGI
b. Henrietta's activity cannot be classified as a business because of the inherently personal nature of photography.
c. If Henriett is engaged in a hobby she reports $2000 income and can deduct $2000 FROM AGI
d. If Henrietta is engaged in a hobby she reports $2000 income and cannot deduct any expenses.
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