Margo Lawrence is employed full-time as a paralegal, but on evenings and weekends, she bakes wedding cakes. Margo started her baking activities in January 2007 and has made a profit every year from her baking through 2012. In 2013, the activity generated a $720 net loss. Which of the following statements is false?

The legal presumption is that Margo's $720 loss is a business loss.
	b.	The legal presumption is that Margo's $720 loss is a nondeductible hobby loss.
	c.	Margo must include the revenues from her baking activity in gross income and can deduct any of her related expenses.
	d.	Margo is not allowed to report her $720 loss as a miscellaneous itemized deduction