Must exceed the applicable percentage of the

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Unformatted text preview: in its income statement for the year ended December 31, 1989. With regard to Ral's contribution to the recognized, qualified charity, Ral: a. Can elect to deduct in its 1989 return any portion of the $75,000 that does not exceed the deduction ceiling for 1989. b. Cannot deduct any portion of the $75,000 in 1989 because the contribution was not paid in 1989. c. Can deduct the entire $75,000 in its 1989 return because Ral reports on the accrual basis. d. Can elect to carry forward indefinitely any portion of the $75,000 not deducted in 1989 or 1990. CPA-02220 Explanation Choice "a" is correct. Ral can elect to deduct in its 1989 return any portion of the $75,000 contribution to the qualified charity that does not exceed the deduction ceiling for 1989. Any excess contribution may be carried forward for 5 years. 55 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Rule: A charitable deduction is limited to the amount paid du...
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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.

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