Otter Corporation sends people to the state capital to lobby the legislature to build a proposed highway that is planned to run through the area where its business is located.
a. If Otter Corp. incurs $3,200 of expenses, what part, if any, of its expenses are deductible?
b. Would it make a difference if the proposed road were a city road rather than a state highway, and Otter lobbied its local government?
c. Assume the same facts in Part a except that Otter’s total in-house expenses are $1,500. Are these expenses deductible?