Riva Works at a Full-Time Job,but Also Restores Her Antique

Multiple Choice

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) $$\begin{array} { |l | l| } \hline\text { Business } & \text { Hobby } \\\hline \text { a reduction of } \$ 2,000&\text {. a reduction of } \$ 2,000 \text {. }\\\hline\end{array}$$
B) $\begin{array}{|l|l|}\hline\text { Business } & \text { Hobby } \\\hline \text { a reduction of } &\$ 2,000 \text { a net change } \$ 0\\\hline\end{array}$
C) $$\begin{array} {| l | l |} \hline \text { Business } & \text { Hobby } \\\hline & \text { an increase of } \\\text { a net change of } \$ 0 \text {. } \$ 2,000 & \$ 10,000 .\\\hline\end{array}$$
D) $$\begin{array} {| l | l |} \hline \text { Business } & \text { Hobby } \\\hline & \text { an increase of } \\\text { a reduction of } \$ 2,000 & \$ 10,000 .\\\hline\end{array}$$