Ajax computer company is an accrual-method calendar-year taxpayer. ajax has never advertised in the national media prior to this year. in november of this year, however, ajax paid $1.8 million for television advertising time during a "super" sporting event scheduled to take place in early february of next year. in addition, in november of this year the company paid $1,300,000 for a one-time advertising blitz during a professional golf tournament in april of next year. what amount of these payments, if any, can ajax deduct this year? a. $1.80 million. b. $3.10 million only if the professional golf tournament is played before april 15.c. $1,300,000.d. no deduction can be claimed this year. e. $3.10 million.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u. s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.