Please help me if item a) is the correct one or item c? Thank you....
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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 form 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 form up to the amount of hobby income.
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 form 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 form up to the amount of hobby income.
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