kindly help me to solve this question.

Which of the following statements is correct?

a. Neither Amanda nor KC can deduct any of the above items in calculating the business profit.

b. Amanda should report profit from her business of $250,000.

c. KC should report profit from her business of $500,000.

d. KC should report profit from her business of $250,000.

e. None of the above.

Amanda and KC both operate illegal businesses. Amanda operates a gambling business that involves high stakes poker games, and an exclusive clientele in the northeastern U.S. KC operates an unlicensed whisky distillery on her property in the Louisiana bayou and sells \"under the counter\" to bars in New Orleans. Both businesses have gross revenues of $500,000. The businesses incur the following expenses. Employee salaries Bribes to police Rent and utilities Cost of goods sold Amanda $200,000 $25,000 $50,000 0 KC $200,000 $25,000 $50,000 $125,000 Which of the following statements is correct? a. Neither Amanda nor KC can deduct any of the above items in calculating the business profit. b. Amanda should report profit from her business of $250,000. c. KC should report profit from her business of $500,000. d. KC should report profit from her business of $250,000. e. None of the above