Clayton Contributes Land to the American Red Cross for Use

question 54

Multiple Choice

Clayton contributes land to the American Red Cross for use as a future site for a new building.His AGI is $50,000.Clayton paid $20,000 for the land eight months ago but its market value at the date of contribution is $25,000.With no special elections,Clayton's deductible contribution this year is

• A)$7,000.
• B)$18,000.
• C)$20,000.
• D)$25,000.

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Definitions:

Lending Funds

The act of providing financial resources to individuals, businesses, or other entities with the expectation of future repayment with interest.

Double Coincidence of Wants

A situation in barter economies where two parties each hold an item the other wants, allowing for a direct exchange.

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Welfare Banks

Financial institutions or programs designed to support low-income individuals or families, offering services like microloans or savings accounts with beneficial terms.