RRK, a calendar year, accrual basis taxpayer, is involved in a legal dispute over an alleged trademark violation. At the end of the year, RRK's accountant recorded a $750,000 accrued expense for the estimated settlement cost of the dispute. Which of the following statements is true? Multiple Choice RRK can deduct the $750,000 accrued expense. RRK can't deduct the $750,000 accrued expense because the liability fails the all-events test. RRK can never deduct the $750,000 expense. RRK can deduct the accrued expense only if the dispute is settled within eight and one-half months after the close of the taxable year.