Assuming that the activity is deemed a hobby and that she cannot itemize this year, how should she report these items on her tax return?

Maxine pursued a hobby of knitting socks in her spare time.  During the year she sold the socks for $ 2,250.  She incurred expenses as follows:

Supplies  $2,200

Interest on loan to get business started    350

Advertising  475

Assuming that the activity is deemed a hobby and that she cannot itemize this year, how should she report these items on her tax return?

a.     Include $2,250 in income and deduct $3,025 for AGI.
b.    Ignore both income and expenses since hobby losses are disallowed.
c.     Include $2,250 in income and deduct nothing for AGI since hobby expenses must be itemized.
d.    Include $2,250 in income and deduct interest of $350 for AGI.
e.     None of the above.