For Corporations, What Happens to Excess Charitable Contributions

question 54

Essay

For corporations, what happens to excess charitable contributions?

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Definitions:

Expected Rate

The projected or anticipated rate of return on an investment over a specific period.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain it.

Marginal Efficiency

The additional benefit received from consuming or producing one more unit of a good or service.

Capital

Refers to any financial asset, including cash, equipment, and buildings, used in production of goods or services.