On December 28, 2021, the board of directors of Talon Corporation, a calendar year, accrual method C corporation, authorized a contribution of land to a qualified charitable organization. The land (basis of $75,000, fair market value of $125,000) was acquired five years ago and held as an investment. For purposes of the taxable income limitation applicable to charitable deductions, Talon has taxable income of $800,000 and $950,000 for 2021 and 2022, respectively. Describe the tax consequences to Talon Corporation under the following independent situations: A. The donation is made on February 15, 2022. B. The donation is made on May 10, 2022.
On December 28, 2021, the board of directors of Talon Corporation, a calendar year, accrual method C corporation, authorized a contribution of land to a qualified charitable organization. The land (basis of $75,000, fair market value of $125,000) was acquired five years ago and held as an investment. For purposes of the taxable income limitation applicable to charitable deductions, Talon has taxable income of $800,000 and $950,000 for 2021 and 2022, respectively. Describe the tax consequences to Talon Corporation under the following independent situations: A. The donation is made on February 15, 2022. B. The donation is made on May 10, 2022.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 39P
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![On December 28, 2021, the board of directors of Talon Corporation, a calendar year,
accrual method C corporation, authorized a contribution of land to a qualified
charitable organization. The land (basis of $75,000, fair market value of $125,000)
was acquired five years ago and held as an investment. For purposes of the taxable
income limitation applicable to charitable deductions, Talon has taxable income of
$800,000 and $950,000 for 2021 and 2022, respectively. Describe the tax
consequences to Talon Corporation under the following independent situations:
A. The donation is made on February 15, 2022.
B. The donation is made on May 10, 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cd3a428-efe3-4105-88bd-69767b7fa8bd%2Ffd1e6c71-946e-408a-a9a6-e33bfe900826%2F9ithjm8_processed.png&w=3840&q=75)
Transcribed Image Text:On December 28, 2021, the board of directors of Talon Corporation, a calendar year,
accrual method C corporation, authorized a contribution of land to a qualified
charitable organization. The land (basis of $75,000, fair market value of $125,000)
was acquired five years ago and held as an investment. For purposes of the taxable
income limitation applicable to charitable deductions, Talon has taxable income of
$800,000 and $950,000 for 2021 and 2022, respectively. Describe the tax
consequences to Talon Corporation under the following independent situations:
A. The donation is made on February 15, 2022.
B. The donation is made on May 10, 2022.
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