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On December 29,2008,the Directors of Greyhawk Enterprises (An Accrual Basis,calendar

Question 84

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On December 29,2008,the directors of Greyhawk Enterprises (an accrual basis,calendar year taxpayer)authorized a cash donation of $10,000 to the United Way,a qualified charity.The payment is made on March 13,2009.
a.Can Greyhawk claim the $10,000 contribution as a deduction for tax year 2008? Explain.
b.Would your answer differ if Greyhawk were a partnership and its partners authorized a donation on December 29, 2008, and Greyhawk paid it on March 13, 2009? Explain.

Correct Answer:

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a.The contribution is deductible in 2008...

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