Jane pursued a hobby of making enchanting little ceramic animals in her spare time. During the year she sold the ceramics for $900. She incurred expenses as follows Supplies $1,000 Interest on loan to get business started 600 Advertising 400 Assuming that the activity is deemed a hobby and that she cannot itemize this year, how should she report these items on her tax return? Include $900 in income and deduct $2,000 for AGI. Ignore both income and expenses since hobby losses are disallowed Include $900 in income and deduct nothing for AGI since hobby expenses must be itemized. Include $900 in income and deduct interest of $600 for AGI