Terry and Jim are both involved in operating illegal businesses. Terry operates a gambling business and Jim operates a business sening narcotics. Both businesses have gross revenues of $500,000. The businesses incur the following expenses. Which of the following statements is correct? a. Terry should repont profit from has basiness of $250,000 b. Jim shoald report profit from his business of $250,000. c. Neither Terry eor Jim can deduct any of these items in cakcolatieg the business profit. d. Jm sbould report profit from his business of $500,000