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 $2.10 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 $1,600,000 for a 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?

Multiple Choice

• $2.10 million
• $1,600,000
• $3.70 million
• $3.70 million only if the professional golf tournament is played before April 15
• No deduction can be claimed this year