Golf Corp. (GC), a calendar-year accrual-method corporation, held its directors' meeting on December 15, 2016. During the meeting the board of directors authorized GC to pay a $75,000 charitable contribution to the World Golf Foundation, a qualifying charity.
a) GC actually pays the $75,000 contribution on April 10, 2017. What book-tax difference will it report associated with the contribution in 2016 (assume the 10 percent limitation does not apply)? Is it favorable or unfavorable? Is it permanent or temporary?
b) GC actually pays half of this contribution on April 20, 2017, and the remaining half on May 15, 2017. What book-tax difference will GC report in 2017 (assuming the 10 percent limitation does not apply)? Is it favorable or unfavorable?