Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help me if item a) is the correct one or it

Please help me if item a) is the correct one or item c? Thank you....

90.2K

Verified Solution

Question

Accounting

Please help me if item a) is the correct one or item c? Thank you.
Which statement best describes the treatment of hobby expenses?
a. Hobby expenses are allowed to be deducted in full from hobby income, but cannot create a loss.
b. Allowed as an adjustment to income in part II of schedule 1(form 1040) up to the amount of hobby income.
c. Only cost of goods sold is allowed to be deducted from hobby gross recepts before reporting the hobby income.
d. Only cost of goods sold is allowed as an adjustment to income in part II of schedule 1(form 1040) up to the amount of hobby income.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Whirlpool's corporate governance about the selection, compensation and removal to board of directors. Which type of...

Finance
Q

Describe Thucydides’ approach to doing history. In your analysis, cite at least 3 specific things the...

Psychology
Q

Research case studies on Southwest Airlines. Then answer the following question. 1. What is the Southwest business...

Electrical Engineering
Q

Which of the following types of bacteria can grow in either the presence or absence...

Biology
Q

A spring does 5.0 J of work on a 0.10-kg ball bearing in a pinball...

Physics
Q

Use Taylor's Theorem to obtain an upper bound for the error of the approximation. Then...

Geometry
Q

Solve the quadratic equation by completing the square x +6x+4=0. To complete the square,...

Basic Math
Q

A company sells tires and rents out a portion of its warehouse toanother company for...

Basic Math
Q

It is estimated that there were 51 3 billion pieces of trash on 79 million...

Algebra
Q

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods...

Accounting
Q

Saxon Manufacturing is considering purchasing two machines. Each machine costs $10,000 and will produce cash...

Accounting
Q

Osborn Manufacturing uses a predetermined overhead rate of $19.40 per direct labor-hour. This predetermined rate...

Accounting