Loon's separate taxable income was $250,000, and Goose's was $140,000.Consolidated taxable income before contributions was $350,000.Charitable contributions made by the affiliated group included $11,000 by Loon and $12,000 by Goose.Compute the group's charitable contribution deduction.

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The group's charitable contribution deduction is limited to 10% of the consolidated taxable income before contributions, which is $350,000. Therefore, the maximum deduction is $35,000. However, the actual contributions made by the group total $23,000 ($11,000 by Loon and $12,000 by Goose), which is less than the maximum limit, so the deduction is $23,000.

Loon's Separate Taxable Income Was $250,000, and Goose's Was $140,000