Final answer:
Corporations are allowed to deduct charitable contributions in excess of 10% of their taxable income but there are limits on the amount they can deduct.
Step-by-step explanation:
False. Corporations are allowed to deduct charitable contributions in excess of 10% of the corporation's taxable income, but there are limits on the amount they can deduct. According to the Internal Revenue Service (IRS), corporations can generally deduct charitable contributions up to 10% of their taxable income before taking into account the charitable contribution and certain other deductions.
However, there are some exceptions to this limit. For example, certain contributions made to private non-operating foundations or certain types of private foundations are subject to a lower limit of 30% of the corporation's taxable income.