In 2022, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-received deduction, and before deducting its $40,000 NOL carryover from last year. Required: a. What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2022, what is the carryover to 2023, and when does the carryover expire? b. Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will OCC report in 2023? Is the difference favorable or unfavorable? Is it permanent or temporary? Complete this question by entering your answers in the tabs below. Required A Required B Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will occ report in 2023? Is the difference favorable or unfavorable? Is it permanent or temporary? Year 2023 Book-tax Difference Favorable or Unfavorable Favorable Temporary or t Permanent Temporary < Required A
In 2022, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-received deduction, and before deducting its $40,000 NOL carryover from last year. Required: a. What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2022, what is the carryover to 2023, and when does the carryover expire? b. Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will OCC report in 2023? Is the difference favorable or unfavorable? Is it permanent or temporary? Complete this question by entering your answers in the tabs below. Required A Required B Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will occ report in 2023? Is the difference favorable or unfavorable? Is it permanent or temporary? Year 2023 Book-tax Difference Favorable or Unfavorable Favorable Temporary or t Permanent Temporary < Required A
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:In 2022, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). For
the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000
dividends-received deduction, and before deducting its $40,000 NOL carryover from last year.
Required:
a. What amount of the $400,000 donation is OCC, allowed to deduct for tax purposes in 2022, what is the carryover to 2023, and
when does the carryover expire?
b. Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution
carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will OCC report in 2023? Is the
difference favorable or unfavorable? Is it permanent or temporary?
Complete this question by entering your answers in the tabs below.
Required A Required B
What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2022, what is the carryover to 2023, and
when does the carryover expire?
Deductible donation
Carryover
Carryover expires after
2027
Requi
Required B >
Transcribed Image Text:In 2022, OCC Corporation made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). For
the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000
dividends-received deduction, and before deducting its $40,000 NOL carryover from last year.
Required:
a. What amount of the $400,000 donation is OCC. allowed to deduct for tax purposes in 2022, what is the carryover to 2023, and
when does the carryover expire?
b. Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution
carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will OCC report in 2023? Is the
difference favorable or unfavorable? Is it permanent or temporary?
Complete this question by entering your answers in the tabs below.
Required A Required B
Assume that in 2023, OCC did not make any charitable donations and that it is allowed to deduct its full charitable
contribution carryover, if any, from 2022. What book-tax difference associated with the charitable contributions will OCC
report in 2023? Is the difference favorable or unfavorable? Is it permanent or temporary?
Year
2023
Book-tax
Difference
Favorable or
Unfavorable
Favorable
Temporary or
Permanent
Temporary
< Required A
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