John Budd is the sole shareholder of Ral Corp., an accrualbasis taxpayer engaged in wholesaling operations. Rals retained earnings at January Year amounted to $ million. For the year ended December Year Rals book income, before federal income tax, was $ Included in the computation of this $ were the following:
Loss on sale of investment in stock of unaffiliated corporation
stock held for years Ral had no other capital gains or losses.
$
Contribution to a recognized, qualified charity. This contribution
was authorized by Rals board of directors in December, Year
to be paid on January Year
With regard to Rals contribution to the recognized, qualified charity, Ral
A
Can elect to deduct in its Year return any portion of the $ that does not exceed the deduction ceiling for Year
B
Cannot deduct any portion of the $ in Year because the contribution was not paid in Year
C
Can deduct the entire $ in its Year return because Ral reports on the accrual basis.
D
Can elect to carry forward indefinitely any portion of the $ not deducted in Year or Year
