Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable organizations during 2010

Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable organizations during 2010. The corporation has net operating income of $140,000 before deducting the contributions, and dividends received from domestic corporations (ownership in all corporations is less than 20 percent) in the amount of $20,000.

a. What is the amount of Citradoria Corporation's allowable deduction for charitable contributions for the current year?
b. What may the corporation do with any excess amount of contributions?


Click here for the solution: Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable organizations during 2010

Denise contributes the following assets to a partnership in exchange for a 25% partnership interest

48. Denise contributes the following assets to a partnership in exchange for a 25% partnership interest:

FMV Basis
Cash $20,000 20,000
Office equipment 12,000 5,000
Auto 20,000 6,000

What is Denise’s beginning basis in her partnership interest?


Click here for the solution: Denise contributes the following assets to a partnership in exchange for a 25% partnership interest

On June 1 of the current year, Patti contributes equipment with a $45,000 basis and a $35,000 FMV in exchange for a partnership interest

49. On June 1 of the current year, Patti contributes equipment with a $45,000 basis and a $35,000 FMV in exchange for a partnership interest. She purchased the equipment three years ago.

a. What is Patti’s basis in her partnership interest?
b. What is Patti’s holding period of her partnership interest?
c. What is the basis of the equipment in the hands of the partnership?
d. What is the holding period of the equipment in the hands of the partnership?
e. How will the partnership depreciate the equipment in the year of contribution?


Click here for the solution: On June 1 of the current year, Patti contributes equipment with a $45,000 basis and a $35,000 FMV in exchange for a partnership interest