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49. Golf Corp. (GC), a calendar-year, accrual-method corporation, held its directors' meeting on December 15 of year 1. During the meeting the board of
49. Golf Corp. (GC), a calendar-year, accrual-method corporation, held its directors' meeting on December 15 of year 1. During the meeting the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a qualifying charity. a) If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on or before April 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (assume the 10 percent limitation does not apply)? Is it favorable or unfavorable? Is it permanent or temporary? b) Assuming the same facts as in part (a), what book-tax difference will GC report in year 2 (assuming the 10 percent limitation does not apply)? Is it favorable or unfavorable? c) If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on May 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (assume the 10 percent limitation does not apply)? Is it favorable or unfavorable? Is it permanent or temporary? d) Assuming the same facts as in part (c), what book-tax difference will GC report in year 2 (assuming the 10 percent limitation does not apply)? Is it favorable or unfavorable?
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