The roof on John and Sharons house was severely damaged in a hail storm. They had to replace the roof for $7,500, which unfortunately was not covered by insurance because of their high deductible of $10,000.

John won $5,000 in the state lottery. He has been playing the lottery for years ($10 in lottery tickets every week, for an annual total of $520); he saves the tickets to keep track of the numbers he plays. John enjoys playing the guitar and plays in a band. During the year his gross revenues were $1,200 for playing shows and $700 on CD sales. His expenses included $200 in equipment repairs. Sharon has been attending some classes at the local college to earn a MBA to learn more about the business environment and to make herself more marketable. During the year she spent $6,000 on tuition and $800 on books.

Where would each of these items be included in the Form 1040 and how much should be included as the amount?