During the current year, Kingbird Corporation (a calendar year C corporation) had the following income and expenses: On October 1, Kingbird Corporation made a contribution to a qualified charitable organization of $9,000 in cash (not included in any of the above items). Determine Kingbird's charitable contribution deduction for the current year.
A) $9,000
B) $7,500
C) $6,750
D) $6,525
E) None of the above

Question

During the current year, Kingbird Corporation (a calendar year C corporation) had the following income and expenses:  On October 1, Kingbird Corporation made a contribution to a qualified charitable organization of $9,000 in cash (not included in any of the above items). Determine Kingbird's charitable contribution deduction for the current year.
A) $9,000 
B) $7,500 
C) $6,750 
D) $6,525 
E) None of the above

Quizplus · Accepted Answer

The charitable contribution deduction for corporations is limited to 10% of taxable income before the charitable contribution. Therefore, Kingbird's charitable contribution deduction is $7,500 (10% of $75,000).

During the Current Year, Kingbird Corporation (A Calendar Year C