Calculate the charitable contribution allowance

Assignment Help Financial Management

Reference no: EM131359073

Salem realizes the importance of being a good corporate citizen and makes general contributions to worldwide charitable organizations. For 2009, Salem wants to contribute $1,500,000 to various charities. Based on 2008 tax laws, if Salem’s taxable income before charitable contributions is $11,500,000 in 2009, calculate the charitable contribution allowance for 2009. Provide a recommendation (500-750 word memo) to Salem management regarding tax implications of this contribution.

Reference no: EM131359073

Questions Cloud

Explain how earnings per share of a company decreased : Explain how earnings per share of a company decreased if the additional capital it wanted was obtained by issuing additional shares of stock.

Corporation motion for summary judgment of dismissal : Chad was an accountant (CPA) who served as general manager of Kelly's Inc., a California corporation. Chad signed a renewal of a promissory note, renewing a note of the corporation, held by Kilgore Bank. How would you rule as the judge on the corpora..

Non-current assets were all land no new capital was raised : ABC international has the following summarised statement of financial position at 31 December 20X1: Non-current assets 2000, inventories 300, receivables 500, cash 200, payables 1000. What cash balance in one year’s time would this imply if the non-c..

What is your cost of giving up the cash discount : You are given the 2/10 net 30 EOM cash discount (in $) for your $1000.00 account payables by your supplier. What is your cost of giving up the cash discount?

Calculate the charitable contribution allowance : Salem realizes the importance of being a good corporate citizen and makes general contributions to worldwide charitable organizations. For 2009, Salem wants to contribute $1,500,000 to various charities. Based on 2008 tax laws, if Salem’s taxable inc..

Some key authors on management theory : You have been introduced to some key authors on management theory including Henri Fayol whose work looked at the duties and roles that managers do and Henry Mintzberg who considered the roles of managers as having more variety and pace.

Calculate jibs net profit margin and book equity multiplier : Jönköping International Business School AB is a limited company and part of Jönköping University Foundation. According to its 2015 annual financial report, it had Assets with a value of 76,246 tSEK(=thousand SEK), a turnover of 180,613 tSEK, net inco..

What taxes must tripex pay on interest and dividend income : Tripex Consolidated Industries owns $1.5 million in 12 percent bonds of Solow Electronics Company. It also owns 100,000 shares of preferred stock of Solow, which constitutes 10 percent of all outstanding Solow preferred shares. In the past year, Solo..

Calculate the npv for this improved machine : Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $1300. However, once built, the machine will last forever and will require no maintenance. Calcul..

User Account

All Pages