Multiple Choice 1 point
Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $98,000 from his employer and won $3,800 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $6,000 of hobby expenses this year? Assume that Glenn itemizes his deductions.
No change in taxable income
Decrease in taxable income of $4,000
Increase in taxable income of $2,036
Increase in taxable income of $3,800
Decrease in taxable income of $1,964