McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 20

Golf Corp. (GC), a calendar-year accrual-method corporation, held its directors meeting on December 15 of year 1. During the meeting the board of directors authorized GC to pay a $75,000 charitable contribution to the Tiger Woods Foundation, a qualifying charity.
a. If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on March 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (assume the 10 percent limitation does not apply) Is it favorable or unfavorable Is it permanent or temporary
b. Assuming the same facts as in part a, what book-tax difference will GC report in year 2 (assuming the 10 percent limitation does not apply) Is it favorable or unfavorable
c. If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on April 15 of year 2, what book-tax difference will it report associated with the contribution in year 1 (assume the 10 percent limitation does not apply) Is it favorable or unfavorable Is it permanent or temporary
d. Assuming the same facts as in part c, what book-tax difference will GC report in year 2 (assuming the 10 percent limitation does not apply) Is it favorable or unfavorable