On December 28,2017,the Board of Directors of Taupe Corporation,a Calendar

question 65

Essay

On December 28,2017,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 2017 and 2018,respectively.Describe the tax consequences to Taupe Corporation under the following independent situations.
a.The donation is made on February 16, 2018.
b.The donation is made on May 11, 2018.

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Definitions:

Rectal Abscess

A collection of pus in the tissue surrounding the rectum, often causing pain and swelling.

Distended Abdomen

An increase in abdominal size, often due to gas, fluid accumulation, or enlargement of abdominal organs.

Thrombosed Hemorrhoid

A hemorrhoid in which a blood clot has formed, often causing severe pain and swelling.

Rectal Prolapse

A medical condition where the rectum extends beyond its usual position, protruding through the anus.