Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income Expenses: Interest paid to obtain tax-exempt bonds Net capital loss Depreciation Life insurance premiums Federal income tax expense Total expenses before charitable contribution, NOL, and DRD Income before charitable contribution: NOLI and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes Charitable contributions Book/Taxable income 200,000 40,000 25,000 (45,000) (200,000) (40,000) (10,000) (42,000) O (25,000) (30,000) (21 ,000) (500,000) (633,000) (180,000) 280,000 30,000 45,000 42,000 21 ,ooo 500,000 12,000 650,000 (55,000) (55,000) (168,000)