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In 2020 Webtel Corporation Donated $59,000 to a Qualifying Charity

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Essay

In 2020 Webtel Corporation donated $59,000 to a qualifying charity. For the year, it reported taxable income of $400,000, which included the following: the $59,000 charitable contribution (before limitation), a $118,000 dividends received deduction, and a $21,800 net operating loss carryover. What is Webtel Corporations charitable contribution deductionassuming it does not elect to apply the 25% of modified taxable income limitation in determining its charitable contribution deduction?


Definitions:

Firm

An organization engaged in commercial, industrial, or professional activities, typically with the aim of earning a profit.

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a period when all factors of production can vary.

Output

Refers to the quantity of goods or services produced in a given time period by a firm or economy.

Short-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied by producers in the short term, under fixed resources and technologies.

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