Which of the following statements regarding political contributions made by a corporation is CORRECT? O a. Political contributions are allowed as a deduction in the computation of taxable income, therefore they are deducted on Schedule 2. O b. Corporations receive a tax credit equal to 15% of political contributions made in the year. O c. Political contributions are not allowed as a deduction in the computation of business income, therefore they are added back on Schedule 1. d. The total deduction for political contributions is limited to 75% of the corporation's net income in the year.
Which of the following statements regarding political contributions made by a corporation is CORRECT? O a. Political contributions are allowed as a deduction in the computation of taxable income, therefore they are deducted on Schedule 2. O b. Corporations receive a tax credit equal to 15% of political contributions made in the year. O c. Political contributions are not allowed as a deduction in the computation of business income, therefore they are added back on Schedule 1. d. The total deduction for political contributions is limited to 75% of the corporation's net income in the year.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 15DQ
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Transcribed Image Text:Which of the following statements regarding
political contributions made by a corporation is
CORRECT?
a. Political contributions are allowed as a
deduction in the computation of taxable
income, therefore they are deducted on
Schedule 2.
b. Corporations receive a tax credit equal
to 15% of political contributions made in
the year.
O c. Political contributions are not allowed as
a deduction in the computation of
business income, therefore they are
added back on Schedule 1.
O d. The total deduction for political
contributions is limited to 75% of the
corporation's net income in the year.
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