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?

Question

Quizplus · Accepted Answer

The charitable contribution deduction is limited to 10% of taxable income before the charitable contribution and dividends-received deductions. Therefore, 10% of $280,000 is $28,000.

Richards Corporation Has Taxable Income of $280,000 Calculated Before the Charitable