Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law. During 2019, a bill designated H.R. 9 is introduced into the state legislature, which, if enacted, would legitimize bingo games. In 2019, Rex had the following expenses:

Operating expenses in conducting bingo games $247,000

Payoff money to state and local police 24,000

Newspaper ads supporting H.R. 93,000

Political contributions to legislators who support H.R. 98,000

Of these expenditures, Rex may deduct:

a.$247,000.

b.$250,000.

c.$258,000.

d.$282,000.

e.None of these.