Question $2$ of $10.$

Alex, an avid woodeorker, started creating custom furniture pleces and selling them to his friends and family. Aumough he pursues this activity as a hobby without profit intentions, he still needs to report his income and expenses. How will you report Alex's income from this activity?

The income and expenses are not reportatie since the activity is not considered a for$-$profit business.

The income in excess of all expenses is reported on Schedule $1($Foms $1040),$ Ine Bz$.$

The income in excess of the cost of goods sold is reported on Schedule $1($Form $1040).$ Ine B$).$

The income is reported as gross income in Part I of Schedule C $($Form $1040)$ and the expenses in Part II$.$

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