JEM, Inc. is an accrual basis calendar year taxpayer. JEM, Inc., held a soccer match in the company arena on December 31, 2024. JEM and Clean, Inc. signed a contract that required Clean, Inc. to clean the arena for $5,000 (after the match) and required JEM, Inc. to pay the $5,000 on January 15, 2025. When should JEM, Inc. deduct the $5,000 cleaning expense? In 2024, when contract was signed You Answered In 2024, when soccer match was held Correct Answer In 2025, when services were performed In 2025, when $5,000 was paid In 2026