Blue corporation donates the following property to johnson, Ask an Expert

Accounting

Blue Corporation donates the following property to Johnson Elementary School:%u2022 XYZ Corporation stock purchased two years ago for $25,000. The stock has a $19,000 FMV on the contribution date. %u2022 Computer equipment built one year ago at a cost of $16,000. The equipment has a $50,000 FMV on the contribution date. Blue is not in the business of manufacturing

computer equipment.

%u2022 PQR Corporation stock purchased six months ago for $12,000. The stock has an $18,000 FMV on the contribution date.

The school will sell the stock and use the proceeds to renovate a classroom to be used as a computer laboratory. Blue%u2019s taxable income before any charitable contribution deduction, dividends-received deduction, or NOL or capital loss carryback is $400,000.

a. What is Blue%u2019s charitable contributions deduction for the current year?

b. What is Blue%u2019s charitable contribution carryback or carryover (if any)? In what years can it be used?

c. What would have been a better tax plan concerning the XYZ stock donation?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9954376

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - cosos internal control - integrated framework

Question - COSO's Internal Control - Integrated Framework discusses technology general controls and application controls. What are technology general controls and application controls? How do technology general controls ...

Question - watch the video then discuss the differences

Question - Watch the video then discuss the differences between variable and absorption costing. How does variable costing help a company make good management decisions? List some examples of ways in which a business wou ...

Question - ajax inc issued callable bonds with a par value

Question - Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carrying value of $990,000. We call these bonds prior to maturity on Sep ...

Management accounting assignment -assignment topic -

Management Accounting Assignment - Assignment Topic - Management Accounting Principles and Effective Planning Tools for Managing Accounts Aim of this assignment - The overall aim of this unit is to introduce the fundamen ...

Need a three page essay double spaced with 4 cited

Need a three page essay, double spaced, with 4 cited references on the topic "Are today's accounting standards too strict following the issues with Enron and Worldcom?". At the end of the essay, need a one page recommend ...

Question -what is financial statement fraudhow is it

Question - What is financial statement fraud? How is it different from embezzlement and misappropriation? Why might senior management overstate or understate business performance?

Question an llc may be taxed in different ways depending on

Question: An LLC may be taxed in different ways depending on the election made on the Form 8832 Entity Classification Election. Using a minimum of 450 words, explain what an LLC is and some of the advantages of this busi ...

Question - x company makes two products a and b and uses an

Question - X Company makes two products, A and B, and uses an activity-based costing overhead allocation system, with three cost pools and three cost drivers. Budgeted costs and driver information for 2017 were as follow ...

Question - last year garrison manufacturing sold 500 000

Question - Last year, Garrison Manufacturing sold 500 000 units at $4 each. Both sales volume and sales price are expected to increase by 15 per cent in the upcoming year. Calculate the expected sales revenue for the upc ...

Question - selected balance sheet and income statement

Question - Selected balance sheet and income statement information for Oracle Corporation follows. (Perform the required computations from the perspective of an Oracle shareholder. $ millions May 31, 2015 May 31, 2014 Op ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert