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help 2. Terry and Jim are both involved in operating illegal...

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Accounting

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2. Terry and Jim are both involved in operating illegal businesses. Terry operates a gambling business and Jim operates a business selling narcotics. Both businesses have gross revenues of $500,000. The businesses incur the following expenses. Which of the following statements is correct? a. Neither Terry nor Jim can deduct any of these items in calculating the business profit. b. Terry should report profit from his business of $460,000. c. Jim should report profit from his business of $500,000. d. Terry should report profit from his business of $260,000. e. None of the above

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