California taxpayers Amelia and Ava have both had significant professional expenses during the tax year. Amelia started a new tech consulting business and incurred various start-up costs. These costs include legal services for drafting her business contracts which amounted to $4,000, incorporation fees of $2,000, and marketing expenses totaling $6,000. She also spent $500 on tax preparation fees for her personal tax return. Ava, a teacher, had to hire a lawyer to handle an employment dispute with her school district, incurring legal fees of $5,000. She also had tax preparation fees of $300 for her personal tax return. How would these expenses be treated for tax deduction purposes at both federal and state levels? a. Both Amelia and Ava can deduct all their expenses on their California tax returns. However, on their federal tax returns, Amelia can only deduct her start-up costs and legal fees, while Ava can only deduct her legal fees. b. Amelia can deduct all her expenses on both federal and California tax returns while Ava can only deduct her legal fees on both her federal and California tax returns. c. Amelia can deduct her start-up costs and legal fees on both federal and California tax returns