In 2022, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). Forthe year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000dividends-received deduction, and before deducting its $40,000 NOL carryover from last year.Required:a. What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2022, what is the carryover to 2023, andwhen does the carryover expire?b. Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contributioncarryover, if any, from 2022. What book-tax difference associated with the charitable contributions will OCC report in 2023? Is thedifference favorable or unfavorable? Is it permanent or temporary?Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required ARequired BWhat amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2022, what is the carryover to 2023, andwhen does the carryover expire?Deductible donation$ 146,000 (Carryover$254,000Carryover expires after2028< Prev4 of 7Next >

In 2022, OCC Corporation, a qualifying charity, made a significant charitable donation of $400,000…

Answered: In 2022, OCC Corporation made a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On July 1, 2019, the Morgan County School District received a $40,000 gift from a local civic organization with the stipulation that, on June 30 of each year, $2,500 plus any interest earnings on the unsoent principal be awarded as a collegescholorship to the high school graduate with the highest academic average. A private-purpose trust fund, the Civic Scholorship Fund, was created. Required: a. Record the followin gtransactions on the books of the Civic Scholorship Fund =: 1. On July 1, 2019, the gift was received and immediatly invested. 2. On June 30, 2020, $2,500 of the principal was converted to cash. In addition, $1,000 of interest was received. 3. On June 30 , the $3,500 was awarded to a student who had maintained a 4.0 gpa throughout her four years. 4. The nominal accounts were closed. B. Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholorship Fund for the year ended June 30, 2020.
3.) Required: On January 1, 2024, a foundation made a pledge to pay $20,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2024, the first payment of $20,000 was received and paid to the researcher. On the books of the Cancer Research Center, record the pledge in January, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate present value annuity factor is 4.3295. Record the increase in the present value as of December 31. Record the receipt of the first $20,000 on December 31 and the payment to the researcher. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.
On January 1, 2020, CDO Corporation created a special building fund by depositing a single sum of P100.000 with an independent trustee. The purpose of the fund is to provide resources to build an addition to the older office building during the latter part of 2024. The company anticipates a total construction cost of P500.000 and completion by January 1, 2025. The company plans to make equal annual deposit from December 31, 2020 through 2024, to accumulate the P500.00O. The independent trustee will increase the fund each December 31 at an interest rate of 10%. The accounting periods of the company and the fund end on December 31. How much is the fund balance as of December 31, 2020? (Round off future value factors to five decimal places)
A private not-for-profit entity receives numerous pledges of financial support to be conveyed at various times over the next few years. Under what condition should these pledges be recognized as receivables and contributed support? At what amount should these pledges be reported?
At the end of 2015, Learning Tree, a not-for-profit organization, received a $5 million contribution (fair value), consisting entirely of investment securities. The contribution is required to be used to establish a permanent endowment, the income from which must be used exclusively to provide free “chapter books” to elementary school children. The endowment specifies that both realized and unrealized gains may be used for this purpose in addition to investment income. Learning Tree applies FASB accounting standards for not-for-profit organizations. At the start of 2016, Learning Tree had $600,000 in unrestricted net assets. During 2016, the endowment earns $100,000 in dividends and interest. Learning Tree spends the entire amount on books and distribution costs. At year-end, the value of the endowment portfolio is $5.5 million. During 2017, the endowment earns $100,000 in dividends and interest. The entire amount is spent on books. At year-end, the fair value of the endowment…
The Alumni Association of a university desires to award 730,000 pesos scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started on July 1, 2018 by a donor in the amount five times of 730,000. The Alumni Association invested this sum at that time at 8% per annum and plans on adding an amount of 1000 per year to fund from its dues starting July 1, 2019 for as long as awards are made. For how many years starting July 1, 2019 can scholarship be awarded?
The will of a wealthy philanthropist left ₱5,000,000 to establish a perpetual charitable foundation. The foundation trustees decided to spend ₱1,200,000 to provide facilities immediately and to provide ₱100,000 of capital replacement at the end of each 5-year period. If the invested funds earned 12% per annum, what would be the year-end amount available in perpetuity from the endowment for charitable purpose? Use 5 as focal point. Ans. ₱79,245
On January 1, 2021, Grace Corp. created a special building fund by depositing a single sum of P300,000 with a Trust Company. The purpose of the fund is to provide resources to build another wing of a building that is expected to be completed by the end of 2025. The company estimates a total expenditure of P1.5 million and completion by January 1, 2026. Grace Corp. plans to make annual deposit from December 31, 2021 to 2025 to accumulate the required P1.5 million. The Trust Company will increase the fund each December 31 at an interest rate of 8%. Both the accounting period of the company and the fund end on December 31. Based on the above and the result of your audit, answer the following (Round off present and future value factors to four decimal places and final answer to the nearest peso): 1. How much is the annual deposit to the fund? 2. How much is the fund balance as of December 31, 2021?
For the 2019 fall semester, Forest Public University assessed its students $6,000,000 (net of refunds), covering tuition and fees for educational and general purposes. However, only $5,700,000 was expected to be realized because tuition remissions of $80,000 were allowed to faculty members’ children attending Forest, and scholarships totaling $220,000 were granted to students. What amount should Forest include in educational and general current funds revenues from student tuition and fees?a. $5,920,000b. $6,000,000c. $5,780,000d. $5,700,000
The Ombudsman Foundation is a private nonprofit organization providing dispute resolution and conflict management training. The Foundation had the following preclosing trial balance at December 31, 2024, the end of its fiscal year: Account: Accounts payable Accounts receivable (net) Accrued interest receivable Accumulated depreciation. Cash Contributed services Contributions-no restrictions Contributions-purpose restrictions Contributions-endowment Current pledges receivable Education program expenses Fund-raising expenses Investment revenue-purpose restrictions Training seminars expenses Land, buildings, and equipment Long-term investments Management and general expenses Net assets without donor restrictions Net assets with donor restrictions Net gains on endowments-no restrictions Noncurrent pledges receivable Program service revenue-no restrictions Debits $47,700 16,700 117,300 80,800 1,538,100 124,300 4,550, 100 5,614,700 2,743,500 408,600 390, 200 Credits $25,100 267,400 215,600…
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