Jerry collects baseball cards as a hobby. During the current year, he acquired twenty- five different items at a total cost of $29,550. During the year, he sold each of those items and received total proceeds of $55,900. What is the effect of these transactions on Jerry's Net Income For Tax Purposes? Jerry has a taxable capital gain of $26,350 Jerry has a taxable capital gain of $13,175 Jerry has business income of $26,350 Because the collection was a hobby, the gain does not have to be included in Net Income For Tax Purposes