Kelsey Enjoys Making Cupcakes as a Hobby and Occasionally Sells

question 5

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)a decrease of $280.

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Definitions:

Brands

Symbols, names, or designs that identify and differentiate products or services from those of competitors.

Postpurchase Stage

A phase in the consumer decision process that involves the evaluation of a purchased product and the experience of using it.

Purchase Decision Process

The stages a consumer goes through before, during, and after buying a product, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Consumer Expectations

The beliefs or standards that customers hold regarding the performance or qualities of products or services they purchase.