Question

uestion 17 3.03 points Save Answ Richards Corporation has taxable income of $280,000 calculated before the charitable contribution deduction and before its dividends-received deduction of $34,000. Richards makes cash contributions of $35,000 to charitable organizations. What is Richards Corporation's charitable contribution deduction for the current year? $28,000 $31,400 $24,600 $35,000

Answer 1

1 Answer and Explanation:

Data:

Taxable income = $280,000

Dividends received = $34,000

Cash contribution = $35,000

Solving:

Adjusted taxable income = 10%

Charitable contribution = Taxable income * Adjusted taxable income

Charitable contribution = 280,000 * 10%

Charitable contribution = 280,000 * 0.10

Charitable contribution = 28,000

Carried forward = Cash contribution - Charitable contribution

Carried forward = 35,000 - 28,000

Carried forward = 7,000

Hence, option A is correct and option and Option B,C,D are wrong.

2.Answer & Explanation

Amortisation of organizational expenses does not include the stock Commission which reduce paid in capital and charter modification feeswhich incurred after initial year end.

$2,000 + $2,000 + $2,000 = $6,000

$6,000- $5,000 = $1,000

$1,000/180 months × 5 months = $27.7

Approximately $28

Therefore:

$5,000 + 28 = $5,028

Hence Option A is correct and B,C,D are wrong.

​​​​​​3.Answer & Explanation

False

You may be able to simply convert all of your Partnership's assets and liabilities over to your new C Corp.

But you will have to pay taxes if your Prtnership's contributes more liabilities than assets to the new C Corp

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