Eric B. Benson, et al. - Page 23

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                    Tax Year                   Amount                                 
                         1990                $1,853.00                                
                         1993                4,194.09                                 
                         1994                4,383.16                                 
               (h) Charitable Contributions                                           
               In 1989, ERG donated $6,000 to the Moraga Valley                       
          Presbyterian Church (MVPC).  On its 1989 Form 1120, ERG claimed             
          the $6,000 as a charitable deduction.  On their 1989 Form 1040,             
          the Bensons also claimed a $6,000 charitable deduction for MVPC.            
               In 1990, ERG donated $6,000 to MVPC.  ERG did not claim the            
          donation as a deduction on its 1990 Form 1120; however, the                 
          Bensons did claim the donation as a deduction on their 1990                 
          individual Federal income tax return.                                       
               In 1993, ERG issued checks payable to MVPC totaling $6,000.            
          ERG issued check No. 23554, dated December 31, 1992, for $50,000            
          made payable to Bank of America.  The check was negotiated on               
          March 3, 1993.  On March 5, 1993, Burton purchased cashier’s                
          check No. 8006822409 for $50,000 from Bank of America made                  
          payable to MVPC.  MVPC deposited the check on March 12, 1993.               
          ERG’s 1993 Form 1120 contained a deduction for charitable                   
          contributions of $4,800 and no charitable contribution carryover.           
          On their 1993 personal Federal income tax return, the Bensons               
          claimed a charitable contribution deduction for the $6,000 paid             
          to MVPC by ERG and the $50,000 cashier’s check paid to MVPC.                








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