Question
ELP Corporation donates the following property to Page Middle School Computer Equipment purchased one year ago at a cost of $27,000. The equipment has a
ELP Corporation donates the following property to Page Middle School
Computer Equipment purchased one year ago at a cost of $27,000. The equipment has a FMV of $40,000 on the date of the contribution.
TAX Corporation stock purchased six months ago for $10,000. The stock has a FMV of $16,000 on the date of the contribution.
CPA Corporation stock purchased five years ago for $20,000. The stock has a FMV of $15,000 on the date of the contribution.
The school will sell the stock and use the proceeds to renovate a classroom to be used as a computer laboratory. ELP's taxable income before any charitable deduction, dividends received deduction, or NOL or capital loss carryback is $500,000k.
- What is ELP's charitable contributions deduction for the current year?
- What is ELP's charitable contributions carryback or carryover (if any)? In what years can it be used?
- What would have been a better plan concerning the CPA stock donation?
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Aat Management Accounting Budgeting
Authors: BPP Learning Media
1st Edition
1509718400, 978-1509718405
