Good corporate citizen

JIM realizes the importance of being a good corporate citizen and makes generous contributions to worldwide charitable organizations. For the current year, JIM wants to contribute $1,500,000 to various charities. Based on prior year’s tax laws, if JIM’s taxable income before charitable contributions is $11,500,000 in the current year.

  • Calculate the charitable contribution allowance for the current year.
  • Provide a recommendation to JIM management regarding the tax implications of this contribution.

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