Calculate ivory corporation deduction for given amount

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Reference no: EM13128000

1. Ivory Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other. Craig owns 55% of the stock, and Oscar owns the remaining 45%. During 2011, Ivory paid a salary of $200,000 to each shareholder. On December 31, 2011, Ivory accrued a bonus of $50,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 1, 2012, compute Ivory Corporation’s 2011 deduction for the above amounts.

2. Grocer Services Corporation (a calendar year taxpayer), a wholesale distributor of food, made the following donations to qualified charitable organizations during the year: Adjusted Basis Fair Market Value Food (held as inventory) donated to the Ohio Children’s Shelter $3,500 $8,000 Passenger van to Ohio Children’s Shelter, to be used to transport children to school 7,500 7,100 Stock in Acme Corporation acquired 7 months ago and held as an investment, donated to Southwest University 4,000 6,200 How much qualifies for the charitable contribution deduction?

Reference no: EM13128000

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