Use the following information to answer the next 5 questions. Callie operates a catering service business. She provides the following information about transactions related to the current year. Her business operates on a calendar- year end and you may assume she makes the appropriate elections to maximize firm value. . . On January 31, paid $20,000 for a lawsuit settlement that was accrued during 2019. On March 1, received cash of $27,000 for 3 years of catering services starting June 1, 2020. On July 1, prepaid interest expense of $2,400 for 3 months starting November 1, 2020. . On November 30, paid $8,400 for 12 months of online advertising starting on December 1, 2020. On December 19, paid $1,200 for a cleaning service that will do a thorough deep clean of her equipment in May of 2021. Question 50 Using the accrual method of accounting, what is Callie's 2020 deduction related to the January 31 lawsuit settlement? None of the choices are correct. $1,667 $0 $18,333 $20,000