Colby Motors uses the accrual method and reports on a calendar year. In December of last ear, Colby acquired auto repair equipment. As part of the acquisition, Colby purchased a warranty agreement that requires the seller of the equipment to provide repairs on the equipment for three ears. Colby paid the cost of the warranty, $15,000, in January of this vear. What can Colby deduct for the cost of the warranty on the tax return for last vear?