John Budd is the sole shareholder of Ral Corp., an accrual$-$basis taxpayer engaged in wholesaling operations. Ral$$s retained earnings at January $1,$ Year $1,$ amounted to $$1$ million. For the year ended December $31,$ Year $1,$ Ral$$s book income, before federal income tax, was $$300,000.$ Included in the computation of this $$300,000$ were the following:

Loss on sale of investment in stock of unaffiliated corporation

$($stock held for $2$ years$).$ Ral had no other capital gains or losses.

$ $(5,000)$

Contribution to a recognized, qualified charity. This contribution

was authorized by Ral$$s board of directors in December, Year $1,$

to be paid on January $31,$ Year $2.$

$75,000$

With regard to Ral$$s contribution to the recognized, qualified charity, Ral

A$.$

Can elect to deduct in its Year $1$ return any portion of the $$75,000$ that does not exceed the deduction ceiling for Year $1.$

B$.$

Cannot deduct any portion of the $$75,000$ in Year $1$ because the contribution was not paid in Year $1.$

C$.$

Can deduct the entire $$75,000$ in its Year $1$ return because Ral reports on the accrual basis.

D$.$

Can elect to carry forward indefinitely any portion of the $$75,000$ not deducted in Year $1$ or Year $2.$