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. an increase of $1,000.
B. a decrease of $280.
C. $0.
D. a decrease of $300.
Answer: A
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a. True b. False Indicate whether the statement is true or false