Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt-track car and has started entering some local dirt-track races. The prize money is pretty small ($1,000 for the winner), but she really is not in it for the money. Penny reported the following income and expenses from her nights at the track: Prize Money: 3.920 Expenses: Transportation from her home to the races: 2,010 Depreciation on the dirt-track car: 5,400 Entry fees: 6,300 Oil, gas, supplies, repairs for car: 2,960 What are the tax effects of Pennys racing income and expenses assuming that the racing activity is a hobby for Penny? Penny's racing income: Penny's racing expense: Gross income for tax: