Glenn Is an Accountant Who Races Stock Cars as a Hobby

Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $80,000 from his employer and won $2,000 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.

A) increase in taxable income of $2,000.
B) increase in taxable income of $1,640.
C) no change in taxable income.
D) decrease in taxable income of $560.
E) decrease in taxable income of $2,200.