LO.1 Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations duringthe current year:Painting held four years as an investment, to a church, which sold itimmediatelyAdjusted BasisFair Market Value$15,000$25,000Apple stock held two years as an investment, to United Way, which sold itimmediately40,00090,000Canned groceries held one month as inventory, to Catholic Meals for the Poor10,00017,000Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.)

To determine Aquamarine Corporation's charitable deduction, we need to consider the adjusted basis…

Answered: LO.1 Aquamarine Corporation, a calendar…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 31P

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Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Adjusted Basis Fair Market Value Painting held four years as an investment, to a church, which sold it immediately $6,000 $10,000 Apple stock held two years as an investment, to United Way, which sold it immediately 15,750 35,000 Canned groceries held one month as inventory, to Catholic Meals for the Poor 2,520 4,200 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Painting: The amount of the contribution is . Stock: The amount of the contribution is . Groceries: The amount of the contribution is . Therefore, the total charitable contribution is $fill in the blank 4. Feedback Area please do not provide solution in image format thank you!
Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Painting: The amount of the contribution is Stock: The amount of the contribution is Groceries: The amount of the contribution is Adjusted Basis $6,000 $10,000 Painting held four years as an investment, to a church, which sold it immediately Apple stock held two years as an investment, to United Way, which sold it immediately Canned groceries held one month as inventory, to Catholic Meals for the Poor 15,750 35,000 7,800 13,000 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Therefore, the total charitable contribution is $ Fair Market Value
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A nongovernmental, not-for-profit organization received the following donations of corporate stock during the year: Donation 1 Donation 2 Donation 3 Number of shares 2,000 3,000 1, 000 Adjusted basis $8,000 $5,500 $3,000 Fair market value at time of donation 8,500 6,000 $4,000 Fair market value at year end 10,000 2,000 $2,500 What net value of investments will the organization report at the end of the year? A.) $14,500 B.) $14,000 C.) $13,500 D.) $12,000
the following recipients: Charity State University Red Cross State History Museum City Medical Center Cash Cash Deduction Carryover Property Antique painting Dell stock Cost FMV $15,000 $15,000 14,500 82,000 17,000 14,500 5,000 28,000 b. Assume that Dean's AGI this year is $150,000. Determine Dean's itemized deduction for his charitable contributions this ye any carryover.
Ray Ray made the following contributions this year. Charity Property Athens Academy School United Way American Heart Association First Methodist Church Cost $ 8,050 5,850 Antique painting 15,300 Coca-Cola stock 15,250 Cash contributions Property donations Cash Cash Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. FMV $8,050 5,850 76,500 22,875 Maximum Amount
Elmore Eisner made the following contributions during the current tax year: Cash to United Way $5,000 Land to Boy Scouts to be used as a summer camp: Cost 20,000 Fair market value 30,000 Painting to a 20 percent charity for permanent display in foundation’s public gallery: Cost 5,000 Fair market value 7,000 Cash to individual needy families around town 3,000 Assuming Elmore’s adjusted gross income is $80,000, what is his charitable contribution deduction for the year and carryover? What is the charitable contribution and carryover if the cost and fair market value of the painting are $25,000 and $27,000, respectively?
Problem #1 Record the following transactions for Porter Hospital, a private, nonprofit hospital: Gross patient services revenues: $25,000,000. Billed to patients. 2. Included in the above revenues are: charity services, $500,000; contractual adjustments, $11,000,000; and estimated uncollectible amounts, $250,000. 3. Purchased equipment by issuing a 5-year note for $200,000. 4. Received cash donations restricted for a capital building addition program, $5,100,000. 5. Incurred and paid $1,700,000 of contractor billings for the capital building program.
During the year, Private College received the following: An unrestricted $10,000 pledge to be paid the following year. A $70,000 cash gift restricted for scholarships. A notice from a recent graduate that the college is named as a beneficiary of $25,000 in that graduate's will. What amount of contribution revenue should Private College report in its statement of activities? A.) $10,000 B.) $70,000 C.) $105,000 D.) $80,000
The following selected transactions occurred for a nongovernmental, not-for-profit organization. 1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23 about 20 years earlier. Its estimated fair value when donated was $250. 2. Pledges receivable at year end were $100, all from pledges received during the year. The pledges are unrestricted and 5% of the pledges are estimated to be uncollectible. The pledges expect to be collected early next year. For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased. A cash gift of $200 was received restricted for the purchase of equipment. Equipment of $80 was purchased from the gift restricted for this purpose. Depreciation expense for the year on the equipment purchased is $10. Required: Prepare the journal entries for the above…
Jimmy Corporation had the following income and expenses during the current year: Gross receipts Selling and Administrative expenses $480,000 200,000 Other operating expenses Contributions to qualified charitable organizations Capital gains Capital loss carryback Depreciation expense Dividend income 40,000 32,000 4,000 3,000 40,000 30,000 Dividends-received deduction 21,000 What is Jimmy Corp's charitable contribution deduction for the current year? Be sure to explain your answer and show your work.

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