This preview shows page 1. Sign up to view the full content.
Unformatted text preview: in its income statement for the year ended December 31,
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.
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.
© 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...
View Full Document
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