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Carmine, Inc., a tobacco manufacturer, incurs certain expenditures associated wi

ID: 2344378 • Letter: C

Question

Carmine, Inc., a tobacco manufacturer, incurs certain expenditures associated with political contributions and lobbying activities. Which of these expenditures can be deducted?
Payments to Washington, D.C. law firm to lobby members of Congress $800,000
Payments to Washington, D.C. law firm to lobby the head of the FDA $25,000
Payment to Richmond law firm to lobby members of the state legislature $50,000
Payments to Lexington law firm to lobby members of the Lexington City Council $5,000
Political contribution to Committee to Reelect the Mayor of Lexington $6,000

Explanation / Answer

Carmine, Inc., a tobacco manufacturer, incurs certain expenditures associated with political contributions and lobbying activities. Which of these expenditures can be deducted?
Payments to Washington, D.C. law firm to lobby members of Congress $800,000
Payments to Washington, D.C. law firm to lobby the head of the FDA $25,000
Payment to Richmond law firm to lobby members of the state legislature $50,000
Payments to Lexington law firm to lobby members of the Lexington City Council $5,000 correct option
Political contribution to Committee to Reelect the Mayor of Lexington $6,000