American Healthcare (AH), an Insurance Company, Is Trying to Persuade

American Healthcare (AH) , an insurance company, is trying to persuade Congress to enact nationwide anti- smoking legislation. As part of this effort, AH paid $500,000 to hire a lobbying firm to discuss its concerns with members of Congress. AH also contributed $100,000 to candidates for political office who support limiting public smoking. What amount of these expenditures can AH deduct?

A) $600,000
B) $500,000
C) $0
D) $100,000