Sonjay Had AGI of $60,000 in 2013 and Made Several

question 36

Multiple Choice

Sonjay had AGI of $60,000 in 2013 and made several charitable contributions as follows: Land donated to county for new school: FMV = $30,000;basis = $20,000
Appraisal fee for the land: $2,500
Contributions to his church: $4,000
Contributions to the Red Cross: $1,000
What is the maximum charitable contribution deduction that Sonjay could claim in 2013:

• A)$30,000
• B)$27,500
• C)$25,000
• D)$24,000

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Definitions:

Tax on Good

A financial charge imposed by a government on the sale of a product or service, affecting its price.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at those prices.

Good Sold

Refers to merchandise or items that have been purchased or exchanged in a transaction.

Tax on Buyers

is a tax that is directly levied on consumers when they purchase goods or services, effectively increasing the purchase price.