Assume the same facts as in Problem I:6-53, except that the income from the sale of rabbits is $1,200.
a. What is the total amount of deductions Chuck may take during the year with respect to the rabbit raising activities?
b. Identify which expenses may be deducted and indicate whether they are deductions for or from AGI.
c. By what amount is the cost basis of the rabbit hutches to be reduced for the year?