Rebecca is a doctor with an AGI of $$125,000$ before consideration of income or loss from her dog breeding business. Her home is on $15$ acres, $10$ of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the following related income and expenses for the current year:

Income from fees and sales $ $2,500$

Expenses:

Dog food $ $4,000$

Veterinary bills $3,500$

Supplies $1,200$

Publications and dues $350$

Required:

How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby?

Note: Leave no cells blank. Enter $"0"$ wherever required.

How would your answer differ if the operation were held to be a business?

Note: Leave no cells blank. Enter $"0"$ wherever required. Enter all losses with a minus sign.Rebecca is a doctor with an AGI of $$125,000$ before consideration of income or loss from her dog breeding business. Her home is on

$15$ acres, $10$ of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the

following related income and expenses for the current year:

Income from fees and sales

Required:

a$.$ How must Rebecca treat the income and expenses of the operation if the dog breediring business is held to be a hobby?

Note: Leave no cells blank. Enter $"0"$ wherever required.

b$.$ How would your answer differ if the operation were held to be a business?

Note: Leave no cells blank. Enter $"0"$ wherever required. Enter all losses with a minus sign.

Answer is complete but not entirely correct.