For 2011,Sleevo Shirt Corporation had net income before the charitable contributions deduction of $10,000 and charitable contributions of $15,000. Sleevo Shirt Corporation may deduct charitable contributions of:

Question

Quizplus · Accepted Answer

Charitable contributions may only be deducted up to a maximum of 10% of the corporation's pre-tax net income. In this case, 10% of $10,000 (net income before charitable contributions) is $1,000, so Sleevo Shirt Corporation may deduct up to $1,000 in charitable contributions. Any excess contributions may be carried forward to future tax years.

For 2011,Sleevo Shirt Corporation Had Net Income Before the Charitable