16. Michael is self-employed and reports the income from his business on Schedule C of his Form 1040. This month, Michael incurred the following costs related to his business: $750 fine to the EPA for violation of environmental regulations $1,200 to a part-time employee who assists in the bookkeeping for Michaels business $300 contribution to the Utah Republican Party (political contribution) $200 for dinner, during which Michael and an important client discussed business $150 for tickets to see the Utah Jazz after the client dinner $2,500 in rent and utilities How much of the above expenses can Michael deduct on his tax return?

$5,100

$0

$3,800

$4,100