With Respect to Charitable Contributions by Corporations, All of the Following

question 81

Multiple Choice

With respect to charitable contributions by corporations, all of the following rules apply with the exception of

• A)unused contributions are carried forward 5 years.
• B)the amount of the contribution deduction is always adjusted basis of the property contributed.
• C)contributions are limited to 10% of taxable income, computed without regard to the charitable contribution deduction, NOL and capital loss carrybacks, or the dividend-received deduction.
• D)accrual-basis corporations may accrue a contribution deduction in the year preceding payment if the board of directors authorizes such payment prior to the end of the tax year, and the payment is actually made within two and one-half months following the end of the tax year.

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Definitions:

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price, represented as a percentual change.

Small Percentage

A quantitatively minor proportion or fraction of a total amount, often implying a negligible or minor impact.

Cross-Price Elasticity

An indicator of the variance in the demand for a specific item as a result of fluctuations in the cost of a different product.