Ajax Computer Company is an accrual−$-$method calendar−$-$year taxpayer. Ajax has never advertised in the national media prior to this year. In November of this year, however, Ajax paid $1.90 million for television advertising time during a "super" sporting event scheduled to take place in early February of next year. In addition, in November of this year the company paid $1,400,000for a one−$-$time advertising blitz during a professional golf tournament in April of next year. What amount of these payments, if any, can Ajax deduct this year? 

Answer rating: 100% (QA)

The Ajax Computer Company can deduct the total amount of its advertising costs in the current year e... View the full answer