Patrick's Records for the Current Year Contain the Following Information

question 70

Multiple Choice

Patrick's records for the current year contain the following information: -He donated stock having a fair market value of $5,000 to a qualified charitable organization.Patrick acquired the stock two years ago at a cost of $3,000.
-He donated 20 hours of his time as a professional plumber to a qualified charitable organization.He bills his time to his customers at $50 per hour.
-He also donated $7,500 cash to a qualified charitable organization.
Patrick's adjusted gross income for the year is $100,000.What is the amount of his charitable contribution deduction?

• A)$10,500
• B)$11,500
• C)$12,500
• D)$13,500

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Definitions:

Agency

A legal relationship in which one party, known as the agent, is authorized to act on behalf of another, known as the principal, in dealing with third parties.

Legal Entity

An organization or structure that is recognized by law as capable of legal rights and obligations, such as a corporation or partnership.

Aggregate

A total or sum, often used in contexts involving the collection of different items or amounts into a single whole.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.