Mark and his brother, Rick, each own farms. Rick is experiencing severe financial difficulties and cannot afford to buy feed for his cattle. Mark purchases $2,000 of feed and gives Rick one-half of the feed. Mark tells Rick that there is no need to repay him and to consider the feed a gift. Which of the following statements is true?
A. Mark can deduct $2,000 for the feed.
B. Rick must report $1,000 as income.
C. Mark can deduct $1,000 for the feed.
D. None of the above is true.
Answer: C
Business
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