Abaco Corp. has gross income of $230,000 and taxable income of $50,000. The company did not include any special deductions in the calculation of taxable income. While reviewing the tax return, Abaco's accountant finds $20,000 of charitable contributions improperly classified as advertising and promotion expense. He sends the return back to the tax department for correction. What is Abaco's corrected taxable income?
A)$35,000
B)$55,000
C)$57,000
D)$63,000
E)$65,000

Question

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The Answer of Abaco Corp. has gross income of $230,000 and taxable income of $50,000. The company did not include any special deductions in the calculation of taxable income. While reviewing the tax return, Abaco's accountant finds $20,000 of charitable contributions improperly classified as advertising and promotion expense. He sends the return back to the tax department for correction. What is Abaco's corrected taxable income?
A)$35,000
B)$55,000
C)$57,000
D)$63,000
E)$65,000