36. Pierre and Basile own and operate illegal businesses. Pierre operates a gambling enterprise that is illegal under state law. Jeff deals drugs. Both businesses have gross revenues of $1,000,000. The businesses incur the following expenses during the year. Employee salaries Bribes to police Rent and utilities Cost of goods sold Parking tickets Political contributions to the campaign of a candidate for Mayor Pierre $400,000 25,000 50,000 -0- 2,000 Basile $400,000 25,000 50,000 250,000 2,000 1,000 1,000 Which of the following statements is correct? a. Neither Pierre nor Basile can deduct any of the above items in calculating the business profit for tax purposes. b. Pierre should report taxable profit from his business of $525,000. c. Basile should report taxable profit from his business of $750,000 d. Basile should report taxable profit from his business of $300,000. e. None of the above