On December 28,2015,the Board of Directors of Taupe Corporation,a Calendar

question 97

Essay

On December 28,2015,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 2015 and 2016,respectively.Describe the tax consequences to Taupe Corporation under the following independent situations.
a.The donation is made on February 16,2016.
b.The donation is made on April 11,2016.

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Definitions:

Like Charges

Charges that are the same (either both positive or both negative) and repel each other according to Coulomb's law.

Opposite Charges

Charges that have different electrical signs, one positive and one negative, which attract each other.

Valence Shell

The outermost shell of an atom that contains the electrons most involved in chemical reactions.

Atom

The smallest unit of a chemical element, consisting of a nucleus of protons and neutrons, surrounded by electrons.