Golf Corporation (GC), a calendar-year, accrual-method corporation, held its directors' meeting on December 15 of year 1. During the meeting the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a qualifying charity. Note: For all requirements, leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect. b. If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on or before April 15 of year 2, what book–tax difference will GC report in year 2 (assume the income limit does not apply)? Is it favorable or unfavorable?

Golf Corporation (GC), a calendar-year, accrual-method corporation, held its directors' meeting on December 15 of year 1. During the meeting the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a qualifying charity. Note: For all requirements, leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect. b. If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on or before April 15 of year 2, what book–tax difference will GC report in year 2 (assume the income limit does not apply)? Is it favorable or unfavorable?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 39P

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Golf Corp (GC), a calendar-year, accrual method corporation, held its directors’ meeting on December 15 of year 1. During the meeting, the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a quality charity. If GC actually pays $50,000 of this contribution on Jan 15 of yar 2 and remaining $25,000 on or before April 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (ASSUME THE 10 PRCENT LIMITATION DOES NOT APPLY)? Is it favorable or unfavorable? Is it permanent or temporary? Assume the same facts as in part (a) what book tac difference will GC report in year 2 (ASSUME THE 10 PRCENT LIMITATION DOES NOT APPLY)? Is it favorable or unfavorable? If GC actually pays $50,000 of this contribution on Jan 15 of yar 2 and remaining $25,000 on May 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (ASSUME THE 10 PRCENT LIMITATION DOES NOT APPLY)? Is it…
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