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Unformatted text preview: Lecture: Regulation 3 CPA-02109
Choice "d" is correct. Tapper's college matching contributions are deductible; Tapper made the
contributions; the employees merely directed the proceeds. The Board's authorized contribution is also
deductible since it satisfies the two rules under which an accrual-basis corporation can deduct an accrued
contribution: 1) it was authorized to a qualified charity by Board resolution before the end of the taxable
year and 2) it was paid by the 15th day of the 3rd month after the end of the taxable year of accrual.
Choices "a", "b", and "c" are incorrect. Based on the above explanation, both items are allowable as
charitable contributions. CPA-02111 Type1 M/C A-D Corr Ans: C 36. CPA-02111 ARE Nov 94 #38 (Adapted) PM#51 R 3-01 Page 17 Which of the following costs are expensable/amortizable organizational expenditures?
d. Professional fees to issue the corporate stock.
Printing costs to issue the corporate stock.
Legal fees for drafting the corporate charter...
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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.
- Fall '10
- The Land