Gray is a calendar year taxpayer.In early December 2016,Gray's Board of Directors authorizes a pledge of an $80,000 donation to the Red Cross to help provide food and shelter to victims of natural disasters.The donation is paid as follows: $10,000 in late December 2016,$40,000 in February 2017,and $30,000 in early May 2017.Disregarding percentage limitations,the maximum deduction for 2016 is:

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An accrual basis corporation can deduct a charitable contribution in the year it is authorized by the board if it is paid by the 15th day of the third month after the end of that year. Gray's corporation can deduct $50,000 for 2016, as $10,000 was paid in December 2016 and $40,000 was paid by March 15, 2017.

Gray Is a Calendar Year Taxpayer