What is amount of Citradoria Corporation allowable deduction

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Problem - In Year 1, Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable organizations during the current tax year. The corporation has net operating income of $145,000, before deducting the contributions, and dividends received from domestic corporations (ownership in all corporations is less than 20 percent) in the amount of $25,000.

Required -

a. What is the amount of Citradoria Corporation's allowable deduction for charitable contributions for Year 1?

b. In Year 2, Citradoria contributes $5,000 to charitable organizations. The corporation has net operating income of $150,000 before deducting the contributions, and no dividend income. What is the amount of Citradoria's allowable deduction for charitable contributions for Year 2?

c. If there is any carryover of the charitable contribution deduction from Year 2, what year will it expire (e.g., Year 3)?

Reference no: EM132702884

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