On May 15 of the current year, the board of directors of Georgia Corporation authorized a $40,000

Question:

On May 15 of the current year, the board of directors of Georgia Corporation authorized a $40,000 donation to a qualified charity. The corporation donated the $40,000 to the charity on December 1 of the current year. It made no other charitable contributions during the year. Georgia reports the following results for the current year:
Taxable income (before the
dividends-received deduction
and charitable contributions)...........................$250,000
Dividends-received deduction..............................10,000

a. What amount of charitable contributions is deductible in the current year?
b. How are any excess contributions treated?
c. How would your answer to Part a change if Georgia incurs a $50,000 NOL in the next year that is carried back to the current year?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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