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 fronm her nights at the track: Prize money Expenses: $3,920 Transportation from her home to the races Depreciation on the dirt-track car Entry fees 2,010 5,400 6,300 Oil, gas, supplies, repairs for the dirt-track car 2,960 Calculate Penny's deduction for the racing expenses assuming that the racing activity is a hobby. Also assume Penny's AGI is $96,180 before considering the prize money. Deductible amount 1,996