N owns and operates a grocery store in a neighborhood that may become the subject of a major renovation if the city council approves the project. With respect to lobbying expenditures, which of the following statements is true? N may deduct consulting expenses for a lobbyist who provides information to the city council regarding the economic effect of the project ON may deduct the cost of an ad in the local newspaper in support of the proposed rehabilitation project. N may deduct the cost of a political contribution to a candidate who shares his views regarding the project. N may deduct the payment to a political action committee involved in lobbying for the renovation of the neighborhood. N may not deduct the expense.