Ivory Fast Delivery Company, an accrual basis taxpayer, frequently has claims for damages to property the company delivered.Often the claim is not filed until a month after the delivery.In the past, Ivory has paid approximately 80% of the claims.In 2019, claims for $80,000 were filed.The company refused to pay $20,000 of the claims (because they were not valid) and paid $50,000.The remaining $10,000 in claims were processed and paid in January 2020.Also, in January 2020, claims for $8,000 were filed for deliveries made in 2019, and $6,000 was paid on these claims by March 15, 2020.Ivory has not elected to use the recurring item exception to economic performance.Under the all-events and economic performance tests, Ivory can accrue which of the following as an expense for 2019:

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The Answer of Ivory Fast Delivery Company, an accrual basis taxpayer, frequently has claims for damages to property the company delivered.Often the claim is not filed until a month after the delivery.In the past, Ivory has paid approximately 80% of the claims.In 2019, claims for $80,000 were filed.The company refused to pay $20,000 of the claims (because they were not valid) and paid $50,000.The remaining $10,000 in claims were processed and paid in January 2020.Also, in January 2020, claims for $8,000 were filed for deliveries made in 2019, and $6,000 was paid on these claims by March 15, 2020.Ivory has not elected to use the recurring item exception to economic performance.Under the all-events and economic performance tests, Ivory can accrue which of the following as an expense for 2019:

Ivory Fast Delivery Company, an Accrual Basis Taxpayer, Frequently Has