Required information [The following information applies to the questions displayed below.] In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. 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. Assume the donation is a qualified contribution. b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the difference favorable or unfavorable? Is it permanent or temporary? 2022 Book-tax Difference Favorable or Temporary or Unfavorable Permanent
Required information [The following information applies to the questions displayed below.] In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. 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. Assume the donation is a qualified contribution. b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the difference favorable or unfavorable? Is it permanent or temporary? 2022 Book-tax Difference Favorable or Temporary or Unfavorable Permanent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. 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. Assume the donation is a
qualified contribution.
b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution
carryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the
difference favorable or unfavorable? Is it permanent or temporary?
2022
Book-tax
Difference
Favorable or Temporary or
Unfavorable Permanent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22da4f3b-2612-43b0-ae2f-5b16aef8bb60%2F84063aa0-3ca2-42c1-a7f8-e953817e9083%2Feci7a0f_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. 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. Assume the donation is a
qualified contribution.
b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution
carryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the
difference favorable or unfavorable? Is it permanent or temporary?
2022
Book-tax
Difference
Favorable or Temporary or
Unfavorable Permanent
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