Quail's separate taxable income was $80,000, and Pigeon's was $150,000.Consolidated taxable income before contributions was $210,000.Charitable contributions made by the affiliated group included $20,000 by Quail and $18,000 by Pigeon.Compute the group's charitable contribution deduction.

Question

Quizplus · Accepted Answer

The group's charitable contribution deduction is limited to 10% of the group's taxable income before contributions, which is $210,000. Therefore, the maximum deduction allowed is $21,000. The contributions made by Quail and Pigeon within this limit, totaling $38,000, are fully deductible.

Quail's Separate Taxable Income Was $80,000, and Pigeon's Was $150,000