QUESTION 9 Ajax Computer Company is an cash-method calendar-year taxpayer. Ajax has never advertised in the national media prior to this year. In November of this year, however, Ajax paid $500,000 for television advertising time during a professional golf tournament in April of next year. In addition, in November of this year the company paid $1,000,000 for a one-year-long advertising campaign to begin in April of next year. What amount of these payments, if any, can Ajax deduct this year? O$1 million, O $500,000 O$1.5 million O $1.5 million only if the professional golf tournament is played before April 15 No deduction can be claimed this year

QUESTION 9 Ajax Computer Company is an cash-method calendar-year taxpayer. Ajax has never advertised in the national media prior to this year. In November of this year, however, Ajax paid $500,000 for television advertising time during a professional golf tournament in April of next year. In addition, in November of this year the company paid $1,000,000 for a one-year-long advertising campaign to begin in April of next year. What amount of these payments, if any, can Ajax deduct this year? O$1 million, O $500,000 O$1.5 million O $1.5 million only if the professional golf tournament is played before April 15 No deduction can be claimed this year

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 29P

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