Riva works at a full-time job, but also restores her antique doll collection and sells them on eBay. She received $10,000 of sales revenue and paid $12,000 of supplies expense. A number of factors must be weighed to determine the appropriate classification of the activity. Depending on that classification, the net effect on her taxable income will be
A.
| Business | Hobby |
| a reduction of $2,000. | a reduction of $2,000. |
B.
| Business | Hobby |
| a net change of $0. | an increase of $10,000. |
C.
| Business | Hobby |
| a reduction of $2,000. | an increase of $10,000. |
D.
| Business | Hobby |
| a reduction of $2,000. | a net change $0. |
Answer: C
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