Robin is the 10-year old daughter of Joe and Sally who file a joint tax return. Robin is claimed by Joe and Sally as a dependent. During the current year, Robin earned $7,000 from an acting part in a movie. With respect to this income,

1. Joe and Sally are required to report this income on their tax return since Robin is a minor.
2. None of the income is reportable because Robin is claimed as a dependent.
3. Robin must report the income because she earned the income.
4. Any income earned by a minor is considered tax-exempt.