On December 28, 2019, the Board of Directors of Taupe

question 59

Essay

On December 28, 2019, the board of directors of Taupe Corporation, a calendar year, accrual method C corporation, authorized a contribution of land to a qualified charitable organization. The land (basis of $75,000, fair market value of $125,000) was acquired five years ago and held as an investment. For purposes of the taxable income limitation applicable to charitable deductions, Taupe has taxable income of $800,000 and $950,000 for 2019 and 2020, respectively. Describe the tax consequences to Taupe Corporation under the following independent situations.
a. The donation is made on February 15, 2020.
b. The donation is made on May 15, 2020.

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Definitions:

Teen Pregnancies

Occurrences of pregnancy among females typically aged 13 to 19, often considered a social, economic, and health issue.

Economic Hardship

A situation where an individual or family is facing financial strain, often leading to a struggle to meet basic needs such as food, housing, and healthcare.

Poverty

A socio-economic condition characterized by insufficient financial resources to meet basic living expenses and maintain an adequate standard of living.

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