Food, Inc. wants to know how much, if any of these settlement payments are deductible.

Food Inc. has been found guilty of selling its product that contained bacteria. It agreed to pay a $5 million fine, to forfeit the $12 million it received from the
sales to the government which plans to distribute the forfeiture to the persons that purchased the product and th spend $3 million to improve its equipment and prevent

future problems. Food, Inc. wants to know how much, if any of these settlement payments are deductible.

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