LO.3 Linda operates a drug-running operation. Which of the following expenses she incurs can reduce taxable income?

a. Bribes paid to border guards.

b. Salaries to employees.

c. Price paid for drugs purchased for resale.

d. Kickbacks to police.

e. Rent on an office.

f. Depreciation on office furniture and equipment.

g. Tenant’s casualty insurance.

h. Utilities.