Question
Help with this tax scenario, please? Disclaimer, assume 2018 U.S tax laws apply. In 2020, Bespin Gas Systems, Inc (a C-Corporation), made a charitable donation
Help with this tax scenario, please?
Disclaimer, assume 2018 U.S tax laws apply.
In 2020, Bespin Gas Systems, Inc (a C-Corporation), made a charitable donation of $100,000 to the Wookie Relief Fund (a qualifying charity). For 2020, they reported net income of $550,000, which included the $100,000 donation, a $50,000 dividends received deduction, and a $10,000 Net Operating Loss carryover, from the previous year.
a. What is the permitted charitable deduction allowed in 2020?
b. What is the effect of the remaining amount (both amount and time of the carryover)?
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