QUESTION 33 Manjula Nahasapeemapetilon hand sews and stitches ghagra cholis lehengas as a hobby and sells them. In the current year, she earns $40,000 (net of COGS) from her lehengas sales and incurs marketing expenses of $5,000. Manjula does not itemize deductions On her tax return, she should A. report no hobby income and no hobby deductions. report $40,000 of hobby income and deduct nothing from AGI. C. report $40,000 of hobby income and deduct $5,000 of hobby expenses from AGI. D.report $40,000 of hobby income and deduct $5,000 of hobby expenses for AGI. report $35,000 of hobby income