Charitable contributions of property

Assignment Help Accounting Basics
Reference no: EM13224117

Charitable Contributions of Property. Blue Corporation donates the following property to Johnson Elementary School:
• XYZ Corporation stock purchased two years ago for $25,000. The stock has a $19,000 FMV on the contribution date.
• 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.
• 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's taxable income before any charitable contribution deduction, dividends-received deduction, or NOL or capital loss carryback is $400,000.
a. What is Blue's charitable contributions deduction for the current year?
b. What is Blue's 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? 

Reference no: EM13224117

Questions Cloud

How much social secruity tax did caroline pay : Caroline Krause earned a salary of $1,000,000. (a). How much Social Secruity tax did she pay (b). How much Medicare Tax did she pay (c). What is her marginal tax rateon her federal personal income tax
What are the best and worst case npvs : What are the best and worst case NPVs with these projections? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Round your answers to 2 decimal places
Nationalism and international rivalries lead europe to war : What were the efforts toward peace during the early 1900's? How did nationalism and international rivalries lead Europe to War? What were the causes and effects of the European Alliance system?
How should firm change its output level to maximize price : If a specific subsidy (negative tax) of s is given to only one competitive firm, how should that firm change its output level to maximize its profit, and how does its maximum profit change
Charitable contributions of property : Charitable Contributions of Property. Blue Corporation donates the following property to Johnson Elementary School:
Foreign oil company and a host country : How has weeks material affected your views on risk sharing between a foreign oil company and a host country and should the host country insist on the amount and/or type of G&G to be conducted? Why or why not?
Thermal pollutin and artificial pollution : Describe a similarity and a difference between thermal pollutin and artificial pollution
Explain what is the percent of the metallic zinc : The hydrochloric acid has a density of 1.18 g/ml and contains 35.0% HCl by mass. What is the percent of the metallic zinc in the original sample. Assume that the impurity in the zinc does not affect the HCl.
Compute the failure rate for six transformers : Compute the failure rate for six transformers that were tested for 600 hours each, three of which failed after 100, 175, and 350 hours.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem on non-deductible personal interest

To make the settlement equal, Donald agreed to pay Marla $600,000, payable over 10 years at 8% interest. For several years, Donald deducted the interest on his Federal income tax return as investment interest. Upon audit, the IRS disallowed the in..

  Result of the current distribution

The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. Carlos's basis in the building is:

  Balance in eve prepaid insurance problem

Eve's Apples opened business on January 1, 2012, and paid for two insurance policies effective that date. The liability policy was $63,000 for eighteen-months, and the crop damage policy was $24,000 for a two-year term. What was the balance in Eve..

  How is holly taxed on the distribution

At the beginning of the year, Penguin Corporation (a calendar year taxpayer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On October 1, Penguin distributes $40,000 in cash t..

  Tax asset and deferred tax liability

Assuming the U.S. tax rate is 35%, and that this is Nocera's first year of operations, what is Nocera's balance in its deferred tax asset and deferred tax liability accounts at year end?

  Economic risk of loss from recourse liabilities

George pays $10,000 for a 20% interest in a general partnership which has recourse liabilities of $20,000. The partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. George's basis in his ..

  Prepare the general journal entries related wyrick company

Instructions  Prepare the general journal entries necessary to record these transactions.  Equity transactions. Presented below is information related to Wyrick Company:

  Selling goods internally to the western division

The Eastern Division sells goods internally to the western division of the same company. The quoted external price in industry publications from a supplier near Eastern is $200 per ton plus transportation.

  What arguments might you present against current position

Until recently, governments were not permitted to recognize increases in the value of investments as revenue. What arguments might you present in support of the current position that investments.

  What is the net present value of machine

Assume that revenue is to be recieved at each year end. and the machine has a useful life of three years with zero salvage value. Management requires a 12% return on its investments. what is the net present value of this machine?

  Budgeted direct labor cost per unit

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $14.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

  Compute estimated cash collections

Compute estimated cash collections during october from credit sales. compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd