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Problem 1: Tony operates an illegal sports betting enterprise out of his Italian restaurant. Considering only the following expenses paid this year, what amount can Tony deduct?
Building rent = $24,000Utilities = $12,000Payments to off-duty policemen to provide security = $20,000Bribes to health inspectors = $40,000
a. $96,000
b. $76,000
c. $56,000
d. $36,000
e. $0
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