Jenna loves to spend her free time quilting. She recently decided to start selling her handmade blankets to friends and family. She does this for recreation, not to make a profit. How will Jenna report the income and expenses from this activity?

She does not report the income or expenses since it is not considered a for$-$profit business.

She will report the income in excess of all expenses on Schedule $1($Form $1040),$ line $8$z$.$

She will report the income in excess of the cost of goods sold on Schedule $1($Form $1040),$ line $8$j$.$

She will report the income as gross income in Part I of Schedule C $($Form $1040)$ and the expenses in Part II$.$