Scott, a single taxpayer, operates the activity of making peanut butter cookies as a hobby. Steve a different taxpayer, operates a similar activity as a bona find business. Scott's gross income from his activity is $3,500 and his expenses are $4,000. Steve's gross income and expenses happened to be the same as Scott's. Neither Scott nor Steve itemize, but both have other forms of taxable income. What is the impact on taxable income for Scott and Steve from these activities?