Required information

Problem $16-50($LO $16-2)($Static$)$

Skip to question

$[$The following information applies to the questions displayed below.$]$

In $2024,$ 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.

Problem $16-50$ Part b $($Static$)$

b$.$ Assume that in $2025,$ OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from $2024.$ What book$-$tax difference associated with the charitable contributions will OCC report in $2025?$ Is the difference favorable or unfavorable? Is it permanent or temporary? $!$

Required information

Problem $16-50($LO $16-2)($Static$)$

$[$The following information applies to the questions displayed below.$]$

In $2024,$ OCC Corporation made a charitable donation of $\backslash$$$400,000$ to the International Rescue Committee $($a qualifying charity$).$ For the year, OCC reported taxable income of $\backslash (\backslash$$ $1,500,000\backslash )$ before deducting any charitable contributions, before deducting its $\backslash (\backslash$$ $20,000\backslash )$ dividends$-$received deduction, and before deducting its $\backslash (\backslash$$ $40,000\backslash$mathrm$\{$NOL$\}\backslash )$ carryover from last year.

Problem $16-50$ Part b $($Static$)$

b$.$ Assume that in $2025,$ OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from $2024.$ What book$-$tax difference associated with the charitable contributions will OCC report in $2025?$ Is the difference favorable or unfavorable? Is it permanent or temporary?

Answer is complete but not entirely correct.