Big Homes Corporation is an accrual-method calendar-year taxpayer that manufactures and sells modular homes. This year, for the first time Big Homes was forced to offer a rebate on the purchase of new homes. At year-end, Big Homes had paid $12,500 in rebates and was liable for an additional $7,750 in rebates to buyers. What amount of the rebates, if any, can Big Homes deduct this year?

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