LO 3.12 e. All of the above are considered to be 24. Stewie, a single taxpayer, operates an activity as a hobby. Brian, a different taxpayer, operates a similar activity as a bona fide business. Stewie's gross income from his activity is $5,000 and his expenses are $6,000. Brian's gross income and expenses are coincidentally the same as Stewie. Neither Stewie nor Brian itemize, but both have other forms of taxable income. What is the impact on taxable income for Stewie and Brian from these activities? a. Stewie will report $0 income and Brian will report a $1,000 loss. b. Stewie will report $5,000 income and $0 deduction and Brian will report a $1,000 loss. c. Stewie and Brian will report $0 taxable income. d. Stewie and Brian will report a $1,000 loss. e. Stewie will report a $1,000 loss and Brian will report $5,000 income