On December 28, 2019, the Board of Directors of Taupe

Essay

On December 28, 2019, the board of directors of Taupe Corporation, a calendar year, accrual method C corporation, authorized a contribution of land to a qualified charitable organization. The land (basis of $75,000, fair market value of $125,000) was acquired five years ago and held as an investment. For purposes of the taxable income limitation applicable to charitable deductions, Taupe has taxable income of $800,000 and $950,000 for 2019 and 2020, respectively. Describe the tax consequences to Taupe Corporation under the following independent situations.
a. The donation is made on February 15, 2020.
b. The donation is made on May 15, 2020.