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-received deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. 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?
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-received deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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-received deduction, and
before deducting its $40,000 NOL carryover from last year. Assume the donation is a
qualified contribution.
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?
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