CHAPTER2 tax problem-4302 - CHAPTER 2 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1 Arleen Corporation a calendar year C Corporation had the

CHAPTER2 tax problem-4302 - CHAPTER 2 SUPPLEMENTAL HANDOUT...

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CHAPTER 2 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1.Arleen Corporation, a calendar year C Corporation, had the following Income and Expenses for theyear of 2016:Income From Operations$500,000Expenses From Operation240,000Dividends Received (Less Than 20% Ownership)30,000Domestic Production Activities Deduction10,000Charitable Contribution35,000(a) What is Arleen Corporation's Charitable Contribution Deduction for the year of 2016?(b) What happens to the portion of the Charitable Contribution that is not deductible for the yearof 2016?(c) Assume that Arleen Corporation is an accrual basis calendar year corporation and the BoardOf Directors of Arleen Corporation has authorized the Charitable Contribution payment by theend of the year of 2016. Can Arleen Corporation deduct the Charitable Contributionpayment for the year of 2016 (ie. on its 2016 Tax Return) if paid as follows:March 10, 2017?April 10, 2017?2.The outstanding stock in Red Corporation, Blue Corporation and Green Corporation, each of
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  • Spring '11
  • williams
  • Dividends, Taxation in the United States, charitable contribution, Arleen Corporation, Yim Corporation

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