Which of the Following Statements Is Correct

Which of the following statements is correct?

A) Hobby expenses are always fully deductible.
B) fte financial status of the taxpayer is not considered in determining whether activities are engaged in for profit.
C) fte deduction for the allowed hobby expenses is an itemized deduction, but not subject to the 2 percent floor.
D) Hobby expenses that are deductible without reference to whether they are incurred in an activity designed to produce income, such as certain taxes, remain fully deductible.