Choice "A" is correct. The percentage threshold limit for charitable contributions for a corporation is 10% of adjusted taxable income. Total taxable income is calculated before the deduction of any charitable contributions, the dividends received deduction, any net operating loss carryback, or any capital loss carryback. Thus, the $300,000 must be adjusted to add back the charitable contribution deduction of $12,000 plus the $10,000 of dividend income not included in the $300,000. The base equals $322,000.
Choice "b" is incorrect. This answer does not take into account the dividend income not included in the $300,000.
Choice "c" is incorrect. This answer considers operating income without adjustments.
Choice "d" is incorrect. This answer reduced the $322,000 for the $7,000 dividends received deduction that Roger Corp. is entitled to, but this should not go into the calculation of the allowable charitable contribution deduction.