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$175,000. The advanced rental payments are taxable when received even though they are not included
in financial income because there is no restriction on their use. The lease cancellation payment is also
included in taxable income in 1994, when received.
Choices "a", "b", and "c" are incorrect, per the above explanation. CPA-02048 Type1 M/C A-D Corr Ans: B PM#23 R 3-01 14. CPA-02048 ARE Nov 95 #8 Page 16
In 1994, Cable Corp., a calendar year C corporation, contributed $80,000 to a qualified charitable
organization. Cable's 1994 taxable income before the deduction for charitable contributions was
$820,000 after a $40,000 dividends-received deduction. Cable also had carryover contributions of
$10,000 from the prior year. In 1994, what amount can Cable deduct as charitable contributions?
Choice "b" is correct. A C corporation can deduct charitable contributions up to 10% of its taxable income
after adding bac...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.
- Fall '10
- The Land