Which of the Following Statements Regarding Excess Charitable Contributions (Contributions

question 29

Multiple Choice

Which of the following statements regarding excess charitable contributions (contributions in excess of the modified taxable income limitation) by corporations is true?

• A)Corporations may not carry over or carry back excess charitable contributions.
• B)Corporations can carry excess charitable contributions over to a future year or back to a prior year.
• C)Corporations can carry excess charitable contributions over to a future year but not back to a prior year.
• D)Corporations can carry excess charitable contributions back to a prior year but not over to a future year.

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Definitions:

Stockholders' Equity Accounts

These accounts represent the owners' residual interest in the corporation's assets after deducting liabilities.

Credit Balances

Accounts within the accounting ledger that have a positive balance, indicating amounts owed to others.

Trial Balance

A list of all accounts with their balances to provide a check on the equality of the debits and credits.

Balance Sheet

A financial statement that presents a company’s assets, liabilities, and shareholders’ equity at a specific point in time, showing the company’s financial condition.