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Unformatted text preview: 0% DRD. CPA-02204 Type1 M/C 101. CPA-02204 A-D Nov 89 II #44 Corr Ans: C PM#7 R 3-99 Page 16 Kell Corp.
Income statement for the year ended December 31, 1988:
Cost of sales
Gain on sale of investments
Life insurance policy proceeds
Income before income tax $900,000
78,000 28,000 8,000
$70,000 All of the contributions were to qualified charitable organizations. When Kell computes the maximum
allowable deduction for contributions, what percentage of contribution base income should Kell use?
Choice "c" is correct. 10%.
Rule: The charitable deduction of a corporation is limited to 10% of its taxable income computed without
4. The contribution deduction
The dividends received deduction
Net operating loss carryback
Capital loss carryback Choices "a" and "b" are incor...
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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