Gold Corporation Sells Baseball Bats and Reported Net Income of $35,000

question 124

Multiple Choice

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

• A)Taxable income of $31,000,carryforward of zero.
• B)Taxable income of $32,000,carryforward of zero.
• C)Taxable income of $35,000,carryforward of $4,000.
• D)Taxable income of $31,500,carryforward of $500.