Karen, a Calendar Year Taxpayer, Made the Following Donations to Qualified

question 71

Multiple Choice

Karen, a calendar year taxpayer, made the following donations to qualified charitable organizations during the year: $\begin{array}{lcr}& \text {Basis}& \text { Fair Market}\\&& \text {Value}\\\text { Cash donation to State University } & \$ 30,000 & \$ 30,000 \\\text { Unimproved land to the City of Terre Haute, } & 70,000 & 210,000 \\\text { Indi ana } & &\end{array}$ ? The land had been held as an investment and was acquired 4 years ago.Shortly after receipt, the City of Terre Haute sold the land for $210,000.Karen's AGI is $450,000.The allowable charitable contribution deduction this year is:

• A)$100,000.
• B)$165,000.
• C)$225,000.
• D)$240,000.
• E)None of the above.

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Definitions:

Merchandising Organisations

Businesses that purchase finished goods for resale, making profits through buying and selling activities without manufacturing.

Intangible Outputs

Outputs or results of a process that cannot be physically touched or measured in traditional ways, often relating to services, experiences, or intellectual property.

Upstream Costs

Expenses incurred in the early stages of production, such as exploration and extraction in the oil and gas industry; they can include costs associated with locating natural resources and preparing them for processing.

Merchandising Entity

A business that purchases finished goods for resale, making a profit on the difference between buying and selling prices.