On December 28, 2012, the Board of Directors of Taupe

Essay

On December 28, 2012, 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 2012 and 2013, respectively. Describe the tax consequences to Taupe Corporation under the following independent situations.