Rex,a Cash Basis Calendar Year Taxpayer,runs a Bingo Operation Which

Multiple Choice

Rex,a cash basis calendar year taxpayer,runs a bingo operation which is illegal under state law.During 2015,a bill designated H.R.9 is introduced into the state legislature which,if enacted,would legitimize bingo games.In 2015,Rex had the following expenses: Operating expenses in conducting bingo games $247,000 Payoff money to state and local police 24,000 Newspaper ads supporting H.R.9 3,000 Political contributions to legislators who support H.R.9 8,000 Of these expenditures,Rex may deduct:

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