In April of 2022, CP was found guilty of price fixing under the Sherman Anti-Trust Act and fined $50,000. In addition, The United States sued CP under the Clayton Act for $140,000, of which $100,000 represents the actual damages (compensatory damages) resulting from the price fixing and $40,000 represents court costs. In July, 2022, CP paid the United States $190,000 ($50,000 + $100,000 + $40,000) in full settlement of the charges.

Can CP deduct $190,000 legal settlement on its tax return under IRC 162 and IRC 6694?