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 $9,000 in cash (not included in any of the above items). Determine Kingbird's charitable contribution deduction for the current year.
A) $9,000
B) $7,500
C) $6,650
D) $6,450
E) None of the above

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 $9,000 in cash (not included in any of the above items). Determine Kingbird's charitable contribution deduction for the current year.
A) $9,000 
B) $7,500 
C) $6,650 
D) $6,450 
E) None of the above

Quizplus · Accepted Answer

Charitable contributions made by a C corporation are generally limited to 10% of taxable income (before charitable contributions). So, Kingbird Corporation's charitable contribution deduction for the current year would be $7,500 ($75,000 taxable income x 10%).

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