Elcox Inc Spent $2

Multiple Choice

Elcox Inc. spent $2.3 million on a new advertising campaign this year. Which of the following statements is true?

A) Elcox is allowed to deduct the $2.3 million cost on this year's tax return only if it expenses the advertising costs for financial statement purposes.
B) Elcox must capitalize the $2.3 million cost.
C) Elcox is allowed to deduct the $2.3 million cost.
D) The $2.3 million cost results in an unfavorable book/tax difference.