Molly is a full$-$time engineer for Y$-$Corporation.$$ On the weekends, Molly enters fishing competitions in order to earn cash prizes.$$ Molly really enjoys the relaxation of fishing and being near the water.$$ Molly made $$5,200$ in income and incurred the following expenses during the year for her fishing activities:

$$ Contest Entrance Fees: $$5,000$

$$ Property taxes on boat: $$200$

$$ Fishing supplies: $$1,000$

$$ Depreciation on equipment:$$ $$500$

Which of the following statements is FALSE about Molly$$s fishing activities?

Group of answer choices

Molly$$s income from her fishing activities is taxable, even though the fishing activities constitute a hobby.

Hobby losses are not allowed as a deduction.

Since hobby expenses are categorized as miscellaneous itemized deductions, they are currently disallowed as deductions.

Molly$$s hobby expenses are fully deductible.