Snow Inc., a calendar year, accrual basis corporation, wants to make a $20,000 donation to the Wild Bird Sanctuary, a qualified charitable organization, but does not have adequate funds to make the contribution in 2023. On December 28, 2023, Snow's board of directors authorizes a $20,000 contribution to the Wild Bird Sanctuary. The donation is made on April 10, 2024. Based on these facts: a. Snow's 2023 income is reduced by $10,000 and Snow's 2024 income is reduced by $10,000. O b. Snow gets no tax benefit in either 2023 or 2024 for the charitable contribution. c. Snow must pay $4,200 in Federal income taxes in 2023. d. Snow must deduct the $20,000 contribution in 2024, the year of the payment. Oe. Snow defers payment of $4,200 in Federal income taxes in 2023.

Snow Inc., a calendar year, accrual basis corporation, wants to make a $20,000 donation to the Wild Bird Sanctuary, a qualified charitable organization, but does not have adequate funds to make the contribution in 2023. On December 28, 2023, Snow's board of directors authorizes a $20,000 contribution to the Wild Bird Sanctuary. The donation is made on April 10, 2024. Based on these facts: a. Snow's 2023 income is reduced by $10,000 and Snow's 2024 income is reduced by $10,000. O b. Snow gets no tax benefit in either 2023 or 2024 for the charitable contribution. c. Snow must pay $4,200 in Federal income taxes in 2023. d. Snow must deduct the $20,000 contribution in 2024, the year of the payment. Oe. Snow defers payment of $4,200 in Federal income taxes in 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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