Jillian knits blouses as a hobby and occasionally sells them. In the current year, she earns $1,000 from her sales and incurs expenses of $1,600. On her tax return, she should

Select one:

a. $0 income and $0 expense

b. report $1,000 of hobby income and deduct $1,600 of hobby expenses from AGI.

c. report $1,000 of hobby income and no expenses.

d. Report a net loss on $600 on Schedule C.