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Unformatted text preview: k the dividends-received deduction; $820,000 taxable income + $40,000 dividendsreceived deduction = $860,000. 10% × $860,000 = $86,000, the maximum allowable charitable
contribution deduction. $4,000 is carried forward to 1995. A corporate charitable deduction that exceeds
the limit for deduction in one year can be carried over to the succeeding five tax years. It cannot be
carried back. CPA-02050 Type1 M/C A-D Corr Ans: C PM#24 R 3-01 15. CPA-02050 ARE Nov 95 #9 Page 16
If a corporation's charitable contributions exceed the limitation for deductibility in a particular year, the
d. Is not deductible in any future or prior year.
May be carried back or forward for one year at the corporation's election.
May be carried forward to a maximum of five succeeding years.
May be carried back to the third preceding year. CPA-02050
Choice "c" is correct.
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Becker CPA Review, PassMaster Questions
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