In year 1, the Helpful Trust agreed to make a $50,000 cash contribution to Local Soup Kitchen, a charitable organization. Helpful's board agreed to the gift at a November year 1 meeting, but the check was not issued until February 20, year 2 (1.e., during the next tax year). 1. For which tax year can the trust claim a charitable contribution deduction? 2. Would the answer to part (a) change if the check was issued on May 1, year 2? If so, how?
In year 1, the Helpful Trust agreed to make a $50,000 cash contribution to Local Soup Kitchen, a charitable organization. Helpful's board agreed to the gift at a November year 1 meeting, but the check was not issued until February 20, year 2 (1.e., during the next tax year). 1. For which tax year can the trust claim a charitable contribution deduction? 2. Would the answer to part (a) change if the check was issued on May 1, year 2? If so, how?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In year 1, the Helpful Trust agreed to make a $50,000 cash contribution to Local Soup Kitchen, a charitable organization. Helpful's board agreed to the gift
at a November year 1 meeting, but the check was not issued until February 20, year 2 (1.e., during the next tax year).
1. For which tax year can the trust claim a charitable contribution deduction?
2. Would the answer to part (a) change if the check was issued on May 1, year 2? If so, how?
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