In Its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The corporation's taxable Income before any charitable contribution deduction was $250,000. In its second year (2022), Barsky made charitable contributions of $15,000 and earned taxable income before the contribution deduction of $300,000. Required: a. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its first year. Allowable charitable contribution deduction Final taxable income Allowable charitable contribution deduction Final taxable income Amount b. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year. $ $ S 25,000 S 225,000 Amount 20,000 280,000
In Its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The corporation's taxable Income before any charitable contribution deduction was $250,000. In its second year (2022), Barsky made charitable contributions of $15,000 and earned taxable income before the contribution deduction of $300,000. Required: a. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its first year. Allowable charitable contribution deduction Final taxable income Allowable charitable contribution deduction Final taxable income Amount b. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year. $ $ S 25,000 S 225,000 Amount 20,000 280,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 30P
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Question
Transcribed Image Text:In Its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The corporation's taxable
Income before any charitable contribution deduction was $250,000. In its second year (2022), Barsky made charitable
contributions of $15,000 and earned taxable income before the contribution deduction of $300,000.
Required:
a. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its first year.
Allowable charitable contribution deduction
Final taxable income
Allowable charitable contribution deduction
Final taxable income
S
S
$
$
Amount
b. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year.
25,000
225,000
Amount
20,000
280,000
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