Shane has always enjoyed sailing. In 2022, he entered several regattas and managed to win prize money of $1,500. His expenses associated with the regattas exceed $25,000. How should Shane's income and expenses incurred from this activity be reported on his tax return?

A. The income should be reported as additional income in Part 1 of Schedule 1 (Form 1040), Additional Income and Adjustments to Income, and the expenses should be reported as an adjustment in Part 2 of the form.

B. The income should be reported as additional income in Part 1 of Schedule 1 (Form 1040), Additional Income and Adjustments to Income, and, if Shane itemizes, the expenses should be deducted on Schedule A, Itemized Deductions.

C. The income should be reported as additional income in Part 1 of Schedule 1 (Form 1040), Additional Income and Adjustments to Income. The expenses are nondeductible.

D. The income is nontaxable and nonreportable, and the expenses are nondeductible.