During the Current Year, Owl Corporation (A C Corporation), a Retailer

question 75

Multiple Choice

During the current year, Owl Corporation (a C corporation) , a retailer of children's apparel, made the following donations to qualified charitable organizations. Adjusted Basis Fair Market Value
Children's clothing held as inventory, to Haven
For Hope $10,000 $15,000
Stock in Exxon Corporation acquired two years ago and 5,000 3,000
Held as an investment, to City University
Land acquired four years ago and held as an investment, 50,000 75,000
To Humane Society
How much qualifies for the charitable contribution deduction?

• A) $63,000
• B) $65,000
• C) $90,500
• D) $92,500
• E) None of the above

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Definitions:

Correcting Entry

An accounting entry made to correct errors found in the financial statements after they have been prepared.

Incorrect Entry

An error or mistake made in recording transactions in the accounting records.

Correcting Entry

A journal entry made to rectify an error in the accounting records, ensuring the accuracy of financial statements.

Equipment

Tangible assets used in operations, not intended for sale, that have a useful life of more than one year.