An employer has $5,000 in entertainment expenses, $26,500 in transportation fringe expenses, and on-premise business meal expenses of $25,000 incurred during the year. How much is deductible on the federal return and how much is on the state return, assuming there is a difference?

a. $0 federal; $56,500 state
b. $12,500 federal; $56,500 state
c. $56,500 federal; $0 state
d. $56,500 federal and state