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

Multiple Choice

Rex, a cash basis calendar year taxpayer, runs a bingo operation which is illegal under state law. During 2017, a bill designated H.R. 9 is introduced into the state legislature which, if enacted, would legitimize bingo games. In 2017, Rex had the following expenses: Of these expenditures, Rex may deduct:

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