25. Which of the following is a required test for the deduction of a business expense? a. Ordinary b. Necessary c. Reasonable d. All of these e. None of these 26. Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law. During 2020, a bill designated H.R. 9 is introduced into the state legislature, which, if enacted, would legitimized bingo games. In 2020, Rex had the following expenses: Operating expenses in conducting bingo games $247,000 24,000 Payoff money to state and local police Newspaper ads supporting H.R. 9 3,000 8,000 Political contributions to legislators who support H.R. 9 Of these expenditures, Rex may deduct: a. $ 247,000. b. $ 250,000. c. $ 258,000. d. $ 282,000. e. None of these. 27. Andrew, who operates a laundry business, incurred the following expenses during the year. Parking ticket of $ 250 for one of his delivery vans that parked illegally. Parking ticket of $ 75 when he parked illegally while attending a rock concert in Tulsa. DUI ticket of $ 500 while returning from the rock concert. Attorney's fee of $ 600 associated with the DUI ticket. What amount can Andrew deduct for these expenses: a. $0. b. $ 250. C. $ 600. d. $ 1,425. e. None of these