Joseli pursued a hobby of painting portraits of friends and neighbors in her spare time. During 2017 she sold the portraits for $2000. She incurred expenses as follows: Supplies 1500 Interest on loan to get started 800 Advertising 400 Assume that the activity is deemed a hobby. How would the activity be reported on her 2017 tax return?

A) Include $2000 in income and deduct $2700 in expenses resulting in a loss of $700

B) Include $2000 in income and deduct interest of $800, resulting in a profit of $1200

C) include $2000 in income and deduct only $2000 of expenses resulting in no profit or loss

D) Ignore both income and expenses since hobby losses are disallowed

E) None of the above.