in its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The corporation's taxable income before a 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. Answer is complete but not entirely correct. Allowable charitable contribution deduction Final taxable income S $ Amount 25,000 225,000 b. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year.
in its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The corporation's taxable income before a 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. Answer is complete but not entirely correct. Allowable charitable contribution deduction Final taxable income S $ Amount 25,000 225,000 b. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year.
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.
Answer is complete but not entirely correct.
Amount
S 25,000
S 225,000
Allowable charitable contribution deduction
Final taxable income
b. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year.
Answer is complete but not entirely correct.
Allowable charitable contribution deduction
Final taxable income
S
669
$
Amount
20,000 X
280,000
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