Fred Farley spends considerable time each year pursuing his electric train hobby $--$

occasionally attending train shows throughout the eastern half of the United States. At shows, Fred often buys and sells train cars and accessories. During $20$x$5,$ Fred recorded gross sales of $$1,700$ at these events and incurred ordinary and necessary expenses of $$2,000.$ On his Form $20$x$51040,$ Fred should report $...$

Gross revenue of $$1,700,$ but can deduct $$2,000$ "for AGI."

Gross revenue of $$1,700,$ but can deduct $$2,000$ "from AGI."

Gross revenue of $$1,700,$ but can deduct no expenditure amount

Gross revenue of zero and no deduction anywhere

None of the above