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: $ 3,420 Prize money Expenses : Transportation from her home to the races Depreciation on the dirt-track car Entry fees Oil, gas, supplies, repairs for the dirt-track car 2,160 5,940 4,600 2,900 What are the tax effects of Penny's 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