RECOMMENDED!!ACT 5798-On October 1, 2017 your company paid $5,000,000

  

On October 1, 2017 your company paid $5,000,000 for a 60-second commercial to be aired during the SuperBowl almost five months from today. The ad has already been produced and filmed. You capitalized the $5,000,000 cost of showing the ad on television rather than expensing it. You operate on a calendar business year. Were you correct in capitalizing the $5,000,000? (NOTE: This is not direct-response advertising.)

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