Each of the following taxpayers is a sole proprietor who received a Paycheck Protection Program (PPP) loan. Which statement is TRUE?

Johanna has no employees. She may deduct the expenses used to apply for PPP forgiveness on her return.

Dwayne has three employees. He is not eligible for the Employee Retention Credit (ERC).

Jeannie has six employees. If she claims the credit for paid leave for any of her employees, she may not claim it for her own leave.

Spencer has four employees. If he claims the Employee Retention Credit (ERC), he may use the same wages for the ERC and PPP loan forgiveness.