On December 2019 the directors of Partridge Corporation, an accr·ual basis calendar year taxpayer, authorized a cash contribution of $10,000 to the American Cancer Association. The payment is made on April 13, 2020. Can Partridge deduct the charitable contribution in 2019? Explain.

Question

Beckham Foley

Business

7 July, 22:59

On December 2019 the directors of Partridge Corporation, an accr·ual basis calendar year taxpayer, authorized a cash contribution of $10,000 to the American Cancer Association. The payment is made on April 13, 2020. Can Partridge deduct the charitable contribution in 2019? Explain.

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Answers (1)

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Wilson · Answer 1

Yes they will be able to make the withdrawal in 2019.

Explanation:

Normally the American Cancer Association should get access to the funds when it is paid in 2020. But since Patridge corporation is an accrual basis organisation, in their books they have already made the contribution.

ACA may access the funds under the condition that the board of directors of Patridge corporation has given approval for the donation before end of 2019, and it must be paid on or before April 13, 2020.