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In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-received deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. Problem 16-50 Part a (Static) What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2021, what is the carryover to 2022, and when doos the carryover expire? Answer is complete but not entirely correct. In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCC reported taxable income of $1,500,000 before deducting any charitabie contributions, before deducting its $20,000 dividends-recelved deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. Problem 16-50 Part b (Static) b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022 ? Is the difference favorable or unfavorable? Is it permanent or temporary

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