I:6-39 Illegal Payments. Indicate whether Glenda can deduct the $5,000 payment in each of the following independent situations.

a. Glenda is a supplier of medical supplies. In order to secure a large sales contract to the regional Veterans Affairs Hospital, Glenda makes a gift of $5,000 to the hospital’s purchasing agent. The payment is illegal under state law.

b. Assume the same facts as in Part

a, except that the payment is made to the purchasing agent of a government-owned hospital in Brazil.

c. Assume the same facts in Part

a, except that the payment is made to the purchasing agent of a privately owned hospital in Idaho.