In 2020 Webtel Corporation Donated $55,500 to a Qualifying Charity

question 58

Essay

In 2020 Webtel Corporation donated $55,500 to a qualifying charity. For the year, it reported taxable income of $365,000, which included the following: the $55,500 charitable contribution (before limitation), a $111,000 dividends received deduction, and a $21,100 net operating loss carryover. What is Webtel Corporations charitable contribution deduction?

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Definitions:

Periodic Method

An inventory accounting method where the inventory balance is updated at the end of each period after a physical count.

Purchases Discounts

Reductions in price given by suppliers for prompt payment or purchases in bulk.

Merchandise Inventory

A detailed list of all the goods a business holds for the purpose of resale, capturing their quantity and possibly value.

Periodic Inventory System

An inventory system where the count of goods and the cost of goods sold are determined at specific intervals, such as annually.