RollerQueens Inc., a calendar-year accrual method taxpayer, enters into a contract each September with a cleaning service to clean the arena after each game during the team's October through March season. Under the criteria of the economic performance test, the RollerQueens Inc.'s deduction for cleaning expense

A. must be amortized over the contract period.
B. is allowed in full in the year RollerQueens Inc. and the cleaning service enter into the contract.
C. is not allowed until payment is made.
D. is not allowed until the cleaning service contract is fully satisfied in the following year.


Answer: B

Business

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