Armando Has AGI of $80,000 and Makes the Following Charitable

question 76

Multiple Choice

Armando has AGI of $80,000 and makes the following charitable contributions: • $10,000 cash to American Heart Society.
• $ 8,000 cash to Redemption Church.
• $24,000 worth of AOL stock acquired in 2005 with a basis of $10,000 to Upper State University. What is Armando's maximum charitable deduction in the current year?

• A) $18,000
• B) $24,000
• C) $28,000
• D) $40,000
• E) $42,000

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Definitions:

Dependent Care Assistance Plans

Employer-provided programs that allow employees to pay for child or dependent care expenses with pre-tax dollars up to a certain limit.

Earned Income

Income derived from active work, including wages, salaries, tips, and professional fees.

Graduate Assistantship

A form of financial aid provided to graduate students through part-time teaching or research duties, often including tuition remission and a stipend.

Tax Return

A document filed with a tax authority that reports income, expenses, and other pertinent tax information. Taxes are paid or refunds are requested via a tax return.