Rhino,Inc.,a calendar year C corporation,had the following income and expenses in 2008:

How much is Rhino's charitable contribution deduction for 2008?
A)$24,200.
B)$24,600.
C)$26,000.
D)$34,000.
E)None of the above.

Question

Rhino,Inc.,a calendar year C corporation,had the following income and expenses in 2008:

How much is Rhino's charitable contribution deduction for 2008?
A)$24,200. 
B)$24,600. 
C)$26,000. 
D)$34,000. 
E)None of the above.

Quizplus · Accepted Answer

Taxable income for purposes of applying the 10% charitable contributions limitation does not include the dividends received deduction or domestic production activities deduction.Thus,taxable income is $260,000 ($450,000 - $210,000 + $20,000)and the maximum charitable contribution allowed is $26,000 (10% F1F1F1S1F1F1F10 $260,000).

Rhino,Inc,A Calendar Year C Corporation,had the Following Income and Expenses