Timm Inc., a calendar year, accrual basis taxpayer, is being sued by a customer who was injured when she tripped over a loose carpet in Timm's retail store. Timm's auditors required the corporation to accrue a $500,000 contingent liability and current year expense. Which of the following statements is true?

		Timm can deduct the $500,000 accrued expense.
		Timm can never deduct the $500,000 expense.
		Timm can deduct the expense in the year in which the liability becomes fixed and determinable.
		Timm can deduct the expense in the year of payment