Corey Corporation reported the following results for the current year: What is the amount of the charitable contribution carryover to next year?

Question

Corey Corporation reported the following results for the current year:  What is the amount of the charitable contribution carryover to next year?

Quizplus · Accepted Answer

The charitable contribution carryover to the next year is the excess of the charitable contributions made during the year over the 10% of the taxable income limit. In this case, the total charitable contributions made during the year are $25,000 and 10% of taxable income is $11,000. Therefore, the excess contribution is $14,000 ($25,000 - $11,000). This excess contribution can be carried over to the next year as a charitable contribution carryover.

Corey Corporation Reported the Following Results for the Current Year