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When a business donates cash into a charitable Business, it is taken into account an cost about the income statement. The reasoning at the rear of this is that the donation represents a use on the company’s resources. By recording the donation as an expense, firms will be able to properly replicate the accurate Value in their charitable giving.
Subject to selected restrictions, people who itemize may well generally assert a deduction for charitable contributions made to qualifying charitable corporations. These limits commonly vary from twenty% to 60% of altered gross income (AGI) and change by the type of contribution and sort of charitable Group. Connected finance ecosystem for method
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