Abaco Corp

Multiple Choice

Abaco Corp. has gross income of $230,000 and taxable income of $50,000. The company did not include any special deductions in the calculation of taxable income. While reviewing the tax return, Abaco's accountant finds $20,000 of charitable contributions improperly classified as advertising and promotion expense. He sends the return back to the tax department for correction. What is Abaco's corrected taxable income?

A) $35,000
B) $55,000
C) $57,000
D) $63,000
E) $65,000