In 2022, Red Corp., a C corporation, donated shares of stock to a qualified charitable organization. The shares had a fair market value of $20,000 and an adjusted basis of $100,000. Before any charitable contribution deduction, Red Corp. will have taxable income of $2,000,000 (no DRD and no loss carryovers) in 2022. What is the amount of Red Corp.'s 2022 charitable contribution deduction? What might Red Corp.want to consider instead of donating the shares of stock to charity?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 38P
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In 2022, Red Corp., a C corporation, donated shares of stock to a qualified charitable organization.
The shares had a fair market value of $20,000 and an adjusted basis of $100,000.
Before any charitable contribution deduction, Red Corp. will have taxable income of $2,000,00O
(no DRD and no loss carryovers) in 2022.
What is the amount of Red Corp.'s 2022 charitable contribution deduction?
What might Red Corp. want to consider instead of donating the shares of stock to charity?
Transcribed Image Text:In 2022, Red Corp., a C corporation, donated shares of stock to a qualified charitable organization. The shares had a fair market value of $20,000 and an adjusted basis of $100,000. Before any charitable contribution deduction, Red Corp. will have taxable income of $2,000,00O (no DRD and no loss carryovers) in 2022. What is the amount of Red Corp.'s 2022 charitable contribution deduction? What might Red Corp. want to consider instead of donating the shares of stock to charity?
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