On December 28,2012,the Board of Directors of Taupe Corporation,a Calendar

question 53

Essay

On December 28,2012,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 2012 and 2013,respectively.Describe the tax consequences to Taupe Corporation under the following independent situations.

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Definitions:

Article 2

Often refers to a specific section within a larger legal document or treaty, which depends on the context of reference.

UCC

The Uniform Commercial Code, a set of laws that regulate sales and commercial transactions in the United States, designed to harmonize the law among the states.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that governs the sale of goods between parties in different nations.

Passing of Title

Passing of title refers to the legal process in which ownership of property or goods is transferred from one party to another.