Teresa is an accomplished actress. During the summer, she rented a vacant store to stage productions of four plays, using the local townspeople as actors and stage hands. She sold $24,000 of tickets to the various plays. Her expenses included $10,000 for copyright fees, $3,000 for store rental, $8,000 for costume purchases and rentals, $2,000 for props other supplies, and $4,000 for all other miscellaneous expenses related to produce whom the series of plays.

a. How does Theresa treat the revenue and expenses if the activity is deemed a business? b. How does Theresa treat the revenue and expenses if the activity is considered a hobby? c. What are some of the factors that should be considered when deciding if this constitutes a business or a hobby?