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26. Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal...

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26. Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law. During 2020, a bill designated H.R. 9 is introduced into the state legislature, which, if enacted, would legitimized bingo games. In 2020, Rex had the following expenses: Operating expenses in conducting bingo games Payoff money to state and local police Newspaper ads supporting H.R. 9 Political contributions to legislators who support H.R. 9 $247,000 24,000 3,000 8,000 Of these expenditures, Rex may deduct: a. $ 247,000. b. $ 250,000. C. $ 258,000. d. $ 282,000. e. None of these

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