Alicia is a high school teacher who enjoys knitting. She knits scarves and sweaters and sells them in a local boutique. Alicia spends 10 to 15 hours a week knitting the scarves and sweaters. Alicia had sales of $8,000 and expenses of $6,000 related to knitting and selling the goods. How would Alicia's income and expenses be reported on her tax return if her knitting activities were characterized as a hobby?
Select one:
a. Net Income from hobby $2,000
b. Net Loss from hobby $2,000
c. Net Income from hobby $8,000
d. Net Loss from hobby $0
e. None of the alternatives are correct
