Kelsey enjoys making cupcakes as a hobby and occasionally sells them for parties.Kelsey receives $1,000 in revenues from cupcake sales this year and pays $1,300 for supplies.Kelsey takes the standard deduction each year.The net effect of the cupcake activity on Kelsey's taxable income is
A)$0.
B)an increase of $1,000.
C)a decrease of $300.
D)an increase of $300.

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The Answer of Kelsey enjoys making cupcakes as a hobby and occasionally sells them for parties.Kelsey receives $1,000 in revenues from cupcake sales this year and pays $1,300 for supplies.Kelsey takes the standard deduction each year.The net effect of the cupcake activity on Kelsey's taxable income is
A)$0.
B)an increase of $1,000.
C)a decrease of $300.
D)an increase of $300.

Kelsey Enjoys Making Cupcakes as a Hobby and Occasionally Sells