Sonia is a high school English teacher. She operates a small pottery activity on a part-time basis. In 2022, she reported the following income and expenses from this activity: Revenue from sale of pottery Depreciation on potter's wheel Property taxes on shed where she does pottery Supplies used such as clay, etc. $12,000 (4,000) (2,250) (7.500) Additional information: 5 Sonia had a salary of $120,000 during the year. She has itemized deductions, not including expenses listed above, of $9,950. 5 Sonia is a single taxpayer. Required: 1. Calculate the amount of Sonia's taxable income assuming that Pottery activity is classified as a hobby. (2.5 marks) 2. If the pottery activity is classified as a trade or business, what will be the amount of Sonia's taxable income. (2.5 marks) 3. What are the criteria necessary for an expenditure to be deductible as business or investment expenses? (3 marks)