CHAPTER 3 CORP TAX PROBLEMS.doc - CHAPTER 3 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1 Arleen Corporation a calendar year C Corporation had

CHAPTER 3 CORP TAX PROBLEMS.doc - CHAPTER 3 SUPPLEMENTAL...

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CHAPTER 3 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1. Arleen Corporation, a calendar year C Corporation, had the following Income and Expenses for the year of 2019: Income From Operations $500,000 Expenses From Operation 240,000 Dividends Received (Less Than 20% Ownership) 30,000 Domestic Production Activities Deduction 10,000 Charitable Contribution 35,000 (a) What is Arleen Corporation's Charitable Contribution Deduction for the year of 2019? (b) What happens to the portion of the Charitable Contribution that is not deductible for the year of 2019? (c) Assume that Arleen Corporation is an accrual basis calendar year corporation and the Board Of Directors of Arleen Corporation has authorized the Charitable Contribution payment by the end of the year of 2019. Can Arleen Corporation deduct the Charitable Contribution payment for the year of 2019 (ie. on its 2019 Tax Return) if paid as follows: March 10, 2020? April 10, 2020? 2. The outstanding stock in Red Corporation, Blue Corporation and Green Corporation, each of
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