Ajax Computer Company Is an Accrual-Method Calendar-Year Taxpayer

question 36

Multiple Choice

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 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 $500,000 fora 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?

• A)$1 million
• B)$500,000
• C)$1.5 million
• D)$1.5 million only if the professional golf tournament is played before April 15
• E)No deduction can be claimed this year

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Definitions:

Group Harmony

The cohesion and agreement among members of a group that contribute to its functioning and the well-being of its members.

Cohesive

Characteristic of a group where members are united, working together effectively towards common goals or interests.

Relationship-Oriented Leader

A leadership style focused on building strong relationships, supporting team members, and emphasizing collaboration and team cohesion.

Task-Oriented

Describes a focus or prioritization on completing tasks and achieving goals, often in a work or group project context.