Answer:
$1,500 in utilities, $1,200 in supplies and $500 in depreciation .
Explanation:
$1,500 in utilities, $1,200 in supplies and $500 in depreciation
Since the activity is classified as a hobby, hobby expenses are deductible to the extent of hobby income of $3,200. Further, they are deducted in a specific order
those that are otherwise allowable such as property taxes and interest; those related to the activity other than those that decrease basis; and those that reduce basis (depreciation).