Paul makes wooden children's toys. In the last four years, she has reported the following amounts of income and loss.

2016	$(7,000)
2017	4,000
2018	(5,000)
2019	2,000

Which of the following is a true statement with respect to the tax treatment of Paul toy-making activity?

		Irrespective of whether the activity reports a profit or loss in 2020, it will be treated as a hobby.
		If the activity reports a loss in 2020, it runs a risk of being treated as a business.
		If the activity reports a profit in 2020, it runs a risk of being treated as a hobby.
		Irrespective of whether the activity reports a profit or loss in 2020, it will be treated as a business.
		If the activity reports a loss in 2020, it runs a risk of being treated as a hobby.