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

question 93

Multiple Choice

Karen, a calendar year taxpayer, made the following donations to qualified charitable organizations during the year: $$\begin{array} { l c r } & \underline { \text { Basis } } & \underline { \text { Fair Market } } \\&&\underline { \text { Value } }\\\text { Cash donation to State University } & \$30,000&\$30,000 \\\text { Unimproved land to the City of Terre Haute, } & 70,000 & \$ 210,000 \\\text { Indiana }\end{array}$$ ? 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.

---

Definitions:

P-value

The chance of getting test findings that are at least as unusual as the ones actually seen, given that the null hypothesis holds.

Null Hypothesis

A default hypothesis that there is no effect or difference, and any observed change in the data is due to random chance.

Confidence Interval

An interval estimate of a population parameter that provides a range of values which is likely to include the parameter of interest.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, describing how much individual data points differ from the mean.