In 2020, Timothy Ganes operates an activity deemed to be a hobby by the IRS. Timothy generates revenues of $50,000 and ordinary and necessary expenses of $70,000. How should Timothy report the activity on his 2020 Form 1040?

A. Net loss $20,000

B. Gross income of $50,000; itemized deduction of $50,000

C. Gross income of $50,000; 0 deduction

D. Gross income of $50,000; $50,000 deduction for AGI

E. None of the above