Lee's 2014 Taxable Income Is $88,000 Before Considering Charitable Contributions

question 112

Multiple Choice

Lee's 2014 taxable income is $88,000 before considering charitable contributions. Lee is a single individual. She makes a donation of $10,000 to the American Heart Association in December 2014. By how much did Lee's marginal tax rate decline simply because of the donation?

• A) 0%
• B) 10%
• C) 3%
• D) 5%
• E) 8%

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Definitions:

Enable

To make a device or system operational; to allow a process or function to proceed.

Permanent Contact

A type of electrical contact that remains closed to ensure a constant flow of electricity, typically used in switches or relays.

Normally Open

A term describing an electrical switch or relay contact that is open (not conducting) when in its default state, closing only in response to a control action.

Normally Closed

A term used to describe a switch or circuit condition where the default state is closed, allowing current to flow unless actuated to open.