Question

On December 16, 2015, the directors of Quail Corporation (an accrual basis, calendar year taxpayer) authorized a cash donation of $5,000 to the American Cancer Society, a qualified charity. The payment, which is made on April 11, 2016, may be claimed as a deduction for tax year 2015.

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Answer 1

The cash donation made by Quail Corporation to the American Cancer Society cannot be claimed as a deduction for tax year 2015.

Step-by-step explanation:

In this question, we are dealing with the tax treatment of a cash donation made by Quail Corporation to the American Cancer Society. The question asks whether the deduction for this donation can be claimed for tax year 2015.

According to the information provided, the directors of Quail Corporation authorized the donation on December 16, 2015, but the payment was made on April 11, 2016. For tax purposes, donations are generally deductible in the year they are paid. Therefore, since the payment was made in 2016, the deduction for the donation cannot be claimed for tax year 2015.