Juanita Knits Blankets as a Hobby and Sells Them

Juanita knits blankets as a hobby and sells them. In the current year, she earns $5,000 from her blanket sales and incurs expenses of $600. On her tax return, she should

A) report no hobby income and no hobby deductions.
B) report $5,000 of hobby income and deduct $600 of hobby expenses from AGI.
C) report $5,000 of hobby income, but she will not be able to take any deductions.
D) report $5,000 of hobby income and deduct $600 of hobby expenses for AGI.