Freddy, a sole proprietor, is one of several retail business owners competing to rent space

in a desirable location that rents at a rate of $2,000 per month. Freddy pays the landlord 12

months rent up front, even though only two months advance rent is required. The lease term

begins October 1, 2015. In addition, Freddy gives the landlord a $2,500 cash gift in order to

sweeten the deal. Considering only these facts, what amount is deductible on Schedule C of

Freddys 2015 tax return?

$6,500

$4,000

$6,000

$8,500