Gero Corp. had operating income of $160,000 after deducting $10,000 for contributions to State University, but not including dividends of $2,000 received from non-affiliated taxable domestic corporations.
In computing the maximum allowable deduction for contributions, Gero should apply the percentage limitation to a base amount of
a. $172,000
b. $170,400
c. $170,000
d. $162,000
Answer: A
Tax
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