In year 6, Garland Corp. contributed $40,000 to a qualified charitable organization. Garland’s year 6 taxable income before the deduction for charitable contributions was $410,000. Included in that amount is a $20,000 dividends received deduction.
Garland also had carryover contributions of $5,000 from the prior year. In year 6, what amount can Garland deduct as charitable contributions?
a. $40,000
b. $41,000
c. $43,000
d. $45,000