Juanita knits blankets as a hobby and sells them. in the current year, she earns $5,000 from her blanket sales and incurs expenses of $600. juanita does not itemize deductions. on her tax return, she shoulda) report $5,000 of hobby income and deduct $500 of hobby expenses from agi. b) report $5,000 of hobby income and deduct $400 of hobby expenses for agi. c) report $5,000 of hobby income and deduct nothing from agi since juanita does not itemize deductions. d) report no hobby income and no hobby deductions.