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) a decrease of $300.
B) $0.
C) a decrease of $280.
D) an increase of $1,000.