Please no plagiarism. I've checked chegg and other website for these questions and they were all wrong. So, please be honest and do the work. Thanks.

1. 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

2. In 20X5, James Bolton, an individual taxpayer, incurred net capital losses that amounted to $25,000. During the period from 20X1 through 20X4, Bolton had net capital gains of $2,000 each year. How much capital loss may Bolton carry forward to 20X6?

$22,000

$14,000

$25,000

$16,000