Angela, who is single, incurs circulation expenditures of $153,000 during 2015. She is deciding whether to deduct the entire $153,000 or to capitalize it and elect to deduct it over a three-year period. Angela already knows that she will be subject to the AMT for 2015 at both the 26% and 28% rates.

Angela is in the 28% bracket for regular income tax purposes this year; she records regular taxable income of $153,000 before considering the circulation expenses. Angela expects to be in the 28% bracket in 2016 and 2017.

Advise Angela on how to treat the expenditures in 2015?