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 $1.7 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 $1,200,000 for advertising time during a professional golf tournament which will occur once in April of next year. What amount of these payments, if any, can Ajax deduct this year?

Multiple Choice

$1.70 million.

$2.90 million.

$2.90 million only if the professional golf tournament is played before April 15.

$1,200,000.

No deduction can be claimed this year.