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Kitty runs a brothel (illegal under state law) and has the following items of income and expense. What is the amount that she must include

Kitty runs a brothel (illegal under state law) and has the following items of income and expense. What is the amount that she must include in taxable income from her operation?

Income $200,000

Expenses:

Rent 8,000

Utilities 2,000

Bribes to police 10,000

Office supplies 5,000

Legal fees 20,000

Depreciation 14,000

Illegal kickbacks 15,000

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