Rex, a Cash Basis Calendar Year Taxpayer, Runs a Bingo

Multiple Choice

Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law.During 2019, a bill designated H.R.9 is introduced into the state legislature, which, if enacted, would legitimize bingo games.In 2019, Rex had the following expenses: $$\begin{array} { l r } \text { Operating expenses in conducting bingo games } & \$ 247,000 \\\text { Payoff money to state and local police } & 24,000 \\\text { Newspaper ads supporting H.R. } 9 & 3,000 \\\text { Political contributions to legislators who support H.R. 9 } & 8,000\end{array}$$ Of these expenditures, Rex may deduct:

A) $247,000.
B) $250,000.
C) $258,000.
D) $282,000.
E) None of these.