With Respect to Charitable Contributions by Corporations, All of the Following

question 221

Multiple Choice

With respect to charitable contributions by corporations, all of the following rules apply with the exception of

• A) unused contributions are carried forward 5 years.
• B) contributions are limited to 10% of taxable income, computed without regard to the charitable contribution deduction, NOL and capital loss carrybacks, or the dividends- received deduction.
• C) accrual- basis corporations may accrue a contribution deduction in the year preceding payment if the board of directors authorizes such payment prior to the end of the tax year, and the payment is actually made within two and one- half months following the end of the tax year.
• D) the amount of the contribution deduction is always the adjusted basis of the property contributed.

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Definitions:

Privately Held

Refers to companies that are privately owned, with their shares not traded on public stock exchanges.

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners of the company with rights to a portion of its profits and assets.

NYSE Euronext

A former global financial markets operator and trading facility that merged with IntercontinentalExchange (ICE) to form a leading marketplace for equities.

Acquired

The process of obtaining control of another company by purchasing its stock or assets.