Problem: Gambali (Ross), a calendar-year, accrual basis S corporation, makes regular and substantial contributions to local tax-exempt charitable organizations. On December 20, its board of directors authorized a $175,000 contribution to the Calvin Home for Abused Children. The corporation paid the contribution on January 25. Gambali's ordinary business income for the year in which the contribution was authorized was $1,286,200.
Can it accrue a $175,000 separately stated charitable contribution for the year?