In the current year, Jaslyn started a profitable bookkeeping business as a sole proprietor. Jaslyn made $$38,000$ in her first year of

operation. What two forms must Jaslyn file for her business?

a$.$ Schedules D and E

b$.$ Schedules SE and

c$.$ Schedules A and C

d$.$ Schedules B and

In determining whether an activity should be classified as a hobby, the tax law provides a rebuttable presumption with regard to the

profits or losses of an activity. Which of the following statements describes the profit$/$loss test that must be satisfied in order to meet the

presumption that the activity was engaged in for profit $($as opposed to just being considered a hobby$)?$

a$.$ The activity shows a loss for $3$ of the $7$ previous years.

b$.$ The activity shows a profit for $3$ of the $7$ previous years.

c$.$ The activity shows a loss for $3$ of the $5$ previous years.

d$.$ The activity shows a profit for $3$ of the $5$ previous years.