During the current year, Owl Corporation (a C corporation), a retailer of children's apparel, made the following donations to qualified charitable organizations. How much qualifies for the charitable contribution deduction?
A)$63,000.
B)$65,000.
C)$90,500.
D)$92,500.
E)None of the above.

Question

During the current year, Owl Corporation (a C corporation), a retailer of children's apparel, made the following donations to qualified charitable organizations.  How much qualifies for the charitable contribution deduction?
A)$63,000. 
B)$65,000. 
C)$90,500. 
D)$92,500. 
E)None of the above.

Quizplus · Accepted Answer

The total amount of donations made by Owl Corporation during the current year is $100,000. However, only the donations made to qualified charitable organizations qualify for the charitable contribution deduction. The donations made for the relief of certain individuals affected by a natural disaster do not qualify for the deduction, according to the tax rules.

Therefore, the amount that qualifies for the charitable contribution deduction is $90,500, which is the sum of donations made to qualified charitable organizations ($65,000 + $25,500). Hence, the correct choice is C.

During the Current Year, Owl Corporation (A C Corporation), a Retailer