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	$2,700
Expenses:
Transportation from her home to the races	1,740
Depreciation on the dirt-track car	5,640
Entry fees	6,000
Oil, gas, supplies, repairs for the dirt-track car	2,860

Calculate Pennys deduction for the racing expenses assuming that the racing activity is a hobby, and Pennys AGI is $98,100 before considering the prize money.