In 2023, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-received deduction, and before deducting its $40,000 NOL carryover from last year.

a. What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2023, what is the carryover to 2024, and when does the carryover expire?

the answer is not $150,000 and $250,000.

b. Assume that in 2024, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2023. What book-tax difference associated with the charitable contributions will OCC report in 2024? Is the difference favorable or unfavorable? Is it permanent or temporary?