In 2023, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). 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. b. Assume that in 2024, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2023. What book-tax difference associated with the charitable contributions will OCC report in 2024? Is the difference favorable or unfavorable? Is it permanent or temporary? Year 2024 Book-tax Difference Favorable or Unfavorable Favorable Temporary or Permanent Temporary
In 2023, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). 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. b. Assume that in 2024, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2023. What book-tax difference associated with the charitable contributions will OCC report in 2024? Is the difference favorable or unfavorable? Is it permanent or temporary? Year 2024 Book-tax Difference Favorable or Unfavorable Favorable Temporary or Permanent Temporary
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In 2023, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a
qualifying charity). 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.
b. Assume that in 2024, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution
carryover, if any, from 2023. What book-tax difference associated with the charitable contributions will OCC report in 2024? Is the
difference favorable or unfavorable? Is it permanent or temporary?
Year
2024
Book-tax
Difference
Favorable or Temporary or
Unfavorable
Permanent
Favorable
Temporary
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