Question: Jerry has collected baseball cards as a hobby for most of his life. During the current year, he acquired twenty-five specially selected cards at a

Jerry has collected baseball cards as a hobby for most of his life. During the current year, he acquired twenty-five specially selected cards at a total cost of $29,550. He sold the cards shortly thereafter for $55,900. What are the income tax consequences of the sale of the cards?

a. Because the collection was a hobby, the gain does not have to be included in income.

b. Jerry has business income of $26,350.

c. Jerry has a taxable capital gain of $26,350.

d. Jerry has a taxable capital gain bf $13,175.

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