Tapper Corp., an accrual-basis calendar-year corporation, was organized on January 2, 2006. During 2006, revenue was exclusively from sales proceeds and interest income. The following information pertains to Tapper:
|
Taxable income before charitable contributions for the year ended December 31, 2006 |
$500,000 |
|
Tapper’s matching contribution to employee-designated qualified universities made during 2006 |
10,000 |
|
Board of Directors’ authorized contribution to a qualified charity (authorized December 1, 2006, made February 1, 2007) |
30,000 |
What is the maximum allowable deduction that Tapper may take as a charitable contribution on its tax return for the year ended December 31, 2006?
- $0
- $10,000
- $30,000
- $40,000