Pritzker Incorporated, a calendar year, accrual basis taxpayer, $is$ being sued for breach $of$ contract $by$ a former business partner. Pritzker's auditors required the corporation $to$ accrue $a$ $$1,000,000$ contingent liability and current year expense. Which $of$ the following statements $is$ TRUE?

Group $of$ answer choices

Pritzker can deduct the expense $in$ the year $of$ payment.

Pritzker can deduct the expense $in$ the year $in$ which the liability becomes fixed and determinable.

Pritzker can never deduct the $$1,000,000$ expense.

Pritzker can currently deduct the $$1,000,000$ accrued expense.