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Rabbit is an accountant who races stock cars as a hobby. This year Rabbit was paid a salary of $80,000 from his employer and won

Rabbit is an accountant who races stock cars as a hobby. This year Rabbit was paid a salary of $80,000 from his

employer and won $2,000 in various races. What is the effect of the racing activities on Rabbit's taxable income if

Rabbit has also incurred $4,200 of hobby expenses this year? Assume that Rabbit itemizes his deductions but has no

other miscellaneous itemized deductions.

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