Terry Is a Practicing Attorney Who Decides to Become an Agent

Terry is a practicing attorney who decides to become an agent for musical groups on the side.Terry engages in the activity and has the following revenue and expenses: $\begin{array}{llcc} \text { Agent fees from clients} &\$500 \\ \text {Travel to concert sites around the country } &6,500\\ \text {Business entertainment } &5,000\\ \text {Depreciation on video and TV equipment used to showcase clients } &3,000\\\end{array}$

a.What are four of the factors the IRS will consider when evaluating whether her activity is a hobby?
b.If the activity is deemed to be a regular business, what is the amount of Terry's net income or loss from the activity?
c.If the activity is deemed to be a hobby, what is the amount (if any) of Terry's expenses from the activity that may be deducted?

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a.Any four of the following factors are ...

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