74. Ramon, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law. During the current year, a bill designated H.R. 9 is introduced into the state legislature, which, if enacted, would legitimize bingo games. In the current year, Ramon 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
$250,000
24,000
3,000
8,000
Of these expenditures, Ramon may deduct: a. $250,000. b. $226,000. c. $247,000. d. $242,000.
e. None of the above.