Multiple Choice Jenna Leigh is employed as a receptionist for a CPA firm, but on...
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Multiple Choice Jenna Leigh is employed as a receptionist for a CPA firm, but on evenings and weekends, she bakes wedding cakes. In each of the past four years, Jenna's baking activity resulted in a net profit. This year, the activity generated a $ net loss. Which of the following statements is true? The legal presumption is that Jenna's $ loss is a nondeductible hobby loss. Jenna must include the revenues from her baking activity in gross income but can't deduct any of her related expenses. Jenna is allowed to report her $ loss as an itemized deduction. The legal presumption is that Jenna's $ loss is a business loss 
Multiple Choice
Jenna Leigh is employed as a receptionist for a CPA firm, but on evenings and weekends, she bakes wedding cakes. In each of the past four years,
Jenna's baking activity resulted in a net profit. This year, the activity generated a $ net loss. Which of the following statements is true?
The legal presumption is that Jenna's $ loss is a nondeductible hobby loss.
Jenna must include the revenues from her baking activity in gross income but can't deduct any of her related expenses.
Jenna is allowed to report her $ loss as an itemized deduction.
The legal presumption is that Jenna's $ loss is a business loss
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