1. 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 Jerrys Net Income For Tax Purposes?
   1. Jerry has a taxable capital gain of $26,350.
   2. Jerry has a taxable capital gain of 13,175.
   3. Jerry has a business income of $26,350.
   4. Because the collection was a hobby, the gain does not have to be included in Net Income For. Tax Purposes.