In March 2018, 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 stare highway, and Otter lobbied its local government?

c. Assume the same facts in Parr a except that Otter's total in-house expenses are $1,500. Are these expenses deductible?