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: What are the tax effects of Penny's racing income and expenses assuming that the racing activity is a hobby for Penny