During the Current Year, Ralph Made the Following Contributions to the University

question 80

Multiple Choice

During the current year, Ralph made the following contributions to the University of Oregon (a qualified charitable organization) : $$\begin{array} { l r } \text { Cash } & \$ 63,000 \\\text { Stock in Raptor, Inc. (a publicly traded corporation) } & 94,500\end{array}$$ Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for the year is $189,000.What is Ralph's charitable contribution deduction for the current year?

• A)$56,700
• B)$63,000
• C)$94,500
• D)$157,500
• E)None of the above

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Definitions:

Volume Variance

The difference between the expected volume of sales or production and the actual volume, which affects budgeting and operational planning.

Fixed Manufacturing Overhead

Fixed manufacturing overhead refers to the costs associated with production that do not vary with the level of output, such as rent for factory buildings, salaries of certain staff, and equipment depreciation.

Overhead Volume Variance

The difference between the budgeted and actual volume of production, affecting the allocation of fixed overhead costs.

Denominator Level

In cost accounting, it refers to the base level of activity or volume used to calculate fixed costs per unit.