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Lorna Forbes, a detective who is single, operates a small pottery activity on a part-time basis. In 2022, she reported the following income and expenses
Lorna Forbes, a detective who is single, operates a small pottery activity on a part-time basis. In 2022, she reported the following income and expenses from this activity: In addition, she had salary of $70,000 and itemized deductions, not including expenses listed above, of $6,800. a. What is the amount of Lorna's taxable income assuming the activity is classified as a hobby? b. What is the amount of Lorna's taxable income assuming the activity is classified as a trade or business? Show answers in good form
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