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 2010,a bill designated H.R.9 is introduced into the state legislature which,if enacted,would legitimize bingo games.In 2010,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.