Sacha Purchased Land in 2010 for $35,000 That She Held

question 25

Multiple Choice

Sacha purchased land in 2010 for $35,000 that she held as a capital asset.This year,she contributed the land to the Boy Scouts of America (a charitable organization) for use as a site for a summer camp.The market value of the land at the date of contribution is $40,000.Sacha's adjusted gross income is $90,000.Assuming no special elections,Sacha's maximum deductible contribution this year is

• A)$13,000.
• B)$27,000.
• C)$35,000.
• D)$40,000.

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Definitions:

Income Ratio

The Income Ratio is a financial metric used to assess a company's profitability by comparing its income to a particular base, such as revenue or assets.

Capital Balance

The amount of money invested in a business by its owners or shareholders, reflected in the company's balance sheet.

Revenue Accounts

These accounts track the income earned by a company from its sales or services before any deductions are made.

Expense Accounts

Accounts used to track money spent or costs incurred by a business in its operational activities.