Which of the Following Statements Is False

Which of the following statements is false?

A) A tax deduction is allowed for a contested amount if the amount is paid prior to final settlement.
B) A tax deduction is allowed to a taxpayer for estimated warranty expense.
C) A tax deduction is allowed in association with a warranty only in the year in which warranty work is performed.
D) No tax deduction is allowed to an accrual- basis taxpayer for the amount of a down payment for a non- recurring expense when the work is to be performed in a subsequent period.