True or False

mr oak an accrual basis calendar year taxpayer sells refrigerators at the retail level. for year 1 his sales totaled 550,000 which included 50,000 from the sale of 1 year service contracts for the refrigerators. from past experience mr brown knows that for year 2 he will have expenses of 20,000 relating to those contracts. since he is on the accrual basis. mr brown can deduct the 20,000 in year 1 as a contigent liability