Problem $11-9$

Special Deductions and Limitations $($LO $11\mathrm{.}3)$

In $2022,$ Citradoria Corporation is a corporation that contributes $$35,000$ cash to

qualified charitable organizations during the current tax year. The corporation has

net operating income of $$91,000,$ before deducting the contributions, and adding

dividends received from domestic corporations $($ownership in all corporations is

less than $20$ percent$)$ in the amount of $$25,000.$

a$.$ What is the amount of Citradoria Corporation's allowable deduction for

charitable contributions for $2022?$

$

$x$

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Corporations are allowed a deduction for contributions to qualified charitable

organizations. Generally, a deduction is allowed in the year in which a payment is

made.

A corporation's charitable contribution deduction is limited to statutory percent of

taxable income, computed before the deduction for charitable contributions, net

operating loss carrybacks, capital loss carrybacks, and the dividends received

deduction. Any excess contributions may be carried forward for a statutory numb

years.

b$.$ In $2023,$ Citradoria contributes $$4,000$ to charitable organizations. The

corporation has net operating income of $$250,000$ before deducting the

contributions, and no dividend income. What is the amount of Citradoria's

allowable deduction for charitable contributions in $2023?$

$ $,x$