Can Joe Corporation deduct the following expenses related to its business?
a. Legal fee paid ($40,000) to acquire a competing chain of stores
b. Legal fee paid ($12,000) to determine whether it should become an S corporation
c. Legal fee paid ($5,000) to defend the company’s president in a lawsuit filed by a disgruntled customer
d. Legal fee paid ($500) to defend title to a vacant lot Joe is holding for construction of a storage building for use in its business
e. Legal fee paid ($2,500) to defend against damages suffered by a customer who was injured when he fell in the company’s store