If a Corporation's Charitable Contributions Exceed the Deduction Limitation in a Particular

question 67

Multiple Choice

If a corporation's charitable contributions exceed the deduction limitation in a particular year, the excess

• A)is not deductible in any future year.
• B)becomes a carryover to a maximum of five succeeding years.
• C)may be carried back to the third preceding year.
• D)is carried over indefinitely.

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Definitions:

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Variable Costing

An accounting method that includes only variable production costs in product costs and treats fixed production costs as period costs.

Reconciliation Method

A process used to ensure that two sets of records or balances are in agreement, often used in accounting to compare transactions and balances.

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin of a company.