Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $40,000. During 2020 she sold the bedspreads for $10,000. She incurred expenses as follows: $4,000 Supplies Interest on loan to get business started Advertising 500 6,500 Assuming that the activity is deemed a hobby, how should she report these items on her tax return? a. Include $10,000 in income and deduct nothing. Ob. Include $10,000 in income and deduct $11,000 for AGI. Oc. Ignore both income and expenses since hobby losses are disallowed. Od. Include $10,000 in income, deduct nothing for AGI, and claim $11,000 of the expenses as itemized deductions