Unformatted text preview: 0% of the DRD is allowed as a deduction.
Choice "d" is incorrect. Kelly Corp. is allowed a 70% DRD. CPA-02109 Type1 M/C A-D 35. CPA-02109 ARE Nov 94 #37 Corr Ans: D PM#50 R 3-01 Page 16 Tapper Corp., an accrual basis calendar year corporation, was organized on January 2, 1993. During
1993, revenue was exclusively from sales proceeds and interest income. The following information
pertains to Tapper:
Taxable income before charitable contributions
for the year ended December 31, 1993
Tapper's matching contribution to employeedesignated qualified universities made
Board of Directors' authorized contribution to
a qualified charity (authorized December 1,
1993, made February 1, 1994) $500,000
30,000 What is the maximum allowable deduction that Tapper may take as a charitable contribution on its tax
return for the year ended December 31, 1993?
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