Kelsey Enjoys Making Cupcakes as a Hobby and Occasionally Sells

Multiple Choice

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.