Response to the following :
1. Charitable Contributions
How is the charitable contribution limitation for a C corporation computed and how are excess charitable contributions treated?
2. Charitable Contributions
Regal, Inc. reported the following for the year.
Gross income includable on the tax return $115,000
Allowable business deductions, not including charitable contributions 90,000
Contributions to qualified charitable organizations 2,750
Dividends received from domestic corporations
(30% ownership and included in the $115,000 gross income amount) 2,000
a. What is Regal's charitable contribution deduction for the current year?
b. What is the amount of taxable income for the current year?
c. What is Regal's charitable contribution deduction carryover, if any?