With respect to charitable donations made by a corporation, which of the following state- ments is correct?

Question

Quizplus · Accepted Answer

Charitable donations made by a corporation are deductible in the determination of corporate taxable income, but not in the determination of corporate net income. Once corporate taxable income has been determined, it is multiplied by the relevant tax rate to arrive at tax payable. The deduction for charitable donations creates a lower taxable income, which results in a lower tax payable. The amount of contributions that can be deducted is limited to a percentage of the corporation's net income for tax purposes, which varies depending on the type of charity and the province the corporation is located in. These contributions cannot be carried back, but they can be carried forward for up to five years.

With Respect to Charitable Donations Made by a Corporation, Which