On December 28,2015,the board of directors of Taupe Corporation,a calendar year,accrual method C corporation,authorized a contribution of land to a qualified charitable organization.The land (basis of $75,000,fair market value of $125,000) was acquired five years ago and held as an investment.For purposes of the taxable income limitation applicable to charitable deductions,Taupe has taxable income of $800,000 and $950,000 for 2015 and 2016,respectively.Describe the tax consequences to Taupe Corporation under the following independent situations.
a.The donation is made on February 16,2016.
b.The donation is made on April 11,2016.

Question

Quizplus · Accepted Answer

The Answer of On December 28,2015,the board of directors of Taupe Corporation,a calendar year,accrual method C corporation,authorized a contribution of land to a qualified charitable organization.The land (basis of $75,000,fair market value of $125,000) was acquired five years ago and held as an investment.For purposes of the taxable income limitation applicable to charitable deductions,Taupe has taxable income of $800,000 and $950,000 for 2015 and 2016,respectively.Describe the tax consequences to Taupe Corporation under the following independent situations.
a.The donation is made on February 16,2016.
b.The donation is made on April 11,2016.

On December 28,2015,the Board of Directors of Taupe Corporation,a Calendar