Referring to Case Study 2 for Gifts Galore, Inc.: If a charitable contribution of $1,500 had been included on the income statement, how would that impact the tax return for 2022?

The charitable contribution will be reported as a miscellaneous expense on page 1, line 19.

The charitable contribution would be reported on Schedule K, line 12a.

The charitable contribution will be reported as a miscellaneous expense on page 1, line 19, and must also be included on Schedule K, line 12a.

S corporations are not allowed to deduct charitable contributions, so no entry is required on the tax return.