In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCC reported taxable income of $1.500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-recelved deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. Problem 16-50 Part b (Static) b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, If any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the difference favorable or unfavorable? Is it permanent or temporary? Book tax Diference Favorable or Unfavorable Temporary of Permanent 2022 Favorable Temporary
In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCC reported taxable income of $1.500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-recelved deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. Problem 16-50 Part b (Static) b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, If any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the difference favorable or unfavorable? Is it permanent or temporary? Book tax Diference Favorable or Unfavorable Temporary of Permanent 2022 Favorable Temporary
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 16-50 (LO 16-2) (Static)
[The following information applies to the questions displayed below.)
In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCC
reported taxable income of $1.500.000 before deducting any charitable contributions, before deducting its $20,000
dividends-recelved deduction, and before deducting Its $40,000 NOL carryover from last year. Assume the donation is a
qualified contribution.
Problem 16-50 Part b (Static)
b. Assume that In 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution
carryover, If any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the
difference favorable or unfavorable? Is it permanent or temporary?
Book tax
Difference
Favorable of
Unfavorable
Temporary or
Permanent
2022
Favorable
Tomporary
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