During the current year,Kingbird Corporation (a calendar year C corporation)had the following income and expenses: On October 1,Kingbird Corporation made a contribution to a qualified charitable organization of $6,300 in cash (not included in any of the above items).Determine Kingbird's charitable contribution deduction for the current year.

Question

During the current year,Kingbird Corporation (a calendar year C corporation)had the following income and expenses:  On October 1,Kingbird Corporation made a contribution to a qualified charitable organization of $6,300 in cash (not included in any of the above items).Determine Kingbird's charitable contribution deduction for the current year.

Quizplus · Accepted Answer

Kingbird's charitable contribution deduction would be limited to 10% of its taxable income before charitable contributions, which would be $45,000 ($70,000 - $25,000). Since the contribution of $6,300 exceeds this limit, the deduction would be limited to $4,500 (10% of $45,000).

During the Current Year,Kingbird Corporation (A Calendar Year C Corporation)had