Snidely Limited spent $1 million this year to upgrade its manufacturing plant, which had received sev-eral warnings from the state environmental agency about releasing pollution into the local river. Late in the year, Snidely received an assessment of $700,000 for violating the state’s Clean Water Act. After he negotiated with the state, which cost $135,000 in legal fees, Snidely promised to spend another $200,000 next year for more pollution-control devices, and the fine was reduced to $450,000. How much of these expenditures can Snidely Limited deduct for tax purposes?