Harry Corp's 202 gross profit from the sale of its inventory totaled $1,000,000 and tax-deductible SG&A expenses totaled $400,000. Harry donated $87,500 of cash to qualified charities. Harry Corp received a $100,000 dividend from an 85% owned corporation. Hary Corp lost money in 20x1, creating a $80,000/net operations loss carry-forward to 20x2.

What is the charitable contribution deduction in 20x2?

a)$62,000

b)$60,000

c)$70,000

d)$87,500

e)$52,000

What is Harrys DRD deduction in 20x2?

A)$50,000

B)$85,000

C)$100,000

D)$180,000

E)0

What is taxable income in 20x2?

A)$450,000

B)$568,000

C)$448,000

D)$458,000

E)$540,000