Jackel, Inc What Is Jackel's Charitable Contribution Deduction? What Is Jackel's Taxable

question 13

Essay

Jackel, Inc. has the following information for the current tax year:
$\begin{array}{ll}\text { Gross sales } & \$ 350,000 \\\text { Cost of goods sold } & 50,000 \\\text { Dividends received }(10 \%) & 40,000 \\\text { Operating expenses } & 30,000 \\\text { Charitable contributions } & 45,000\end{array}$
What is Jackel's charitable contribution deduction? What is Jackel's taxable income?

---

Definitions:

Consumer Surplus

The gap between what consumers are prepared to spend on a good or service and what they end up paying.

Price

The cost at which goods or services are offered to consumers.

Surplus Amount

The excess of supply over demand in a market, resulting in downward pressure on prices.

Consumer Surplus

The discrepancy between what consumers are ready and capable of paying for a product or service and the actual amount they end up paying.