It cannot be carried back cpa 02050 type1 mc a d corr

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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 excess: a. b. c. 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 Explanation Choice "c" is correct. 7 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lec...
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