Some Charitable Contributions Are Limited to 50% of the Taxpayer's

question 51

Multiple Choice

Some charitable contributions are limited to 50% of the taxpayer's AGI,others may be limited to a lower % of AGI.Deductions to which of the following organizations are subject to the 50% limitation on deductible contributions?

• A)Churches and conventions of organizations of churches and educational organizations.
• B)Hospitals and certain medical research organizations associated with these hospitals.
• C)Rotary,Elks,and Lions Clubs who raise money for public causes.
• D)Both churches and conventions of organizations of churches and educational organizations and hospitals and certain medical research organizations associated with these hospitals.

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Definitions:

Inventory Levels

The quantity of goods and materials on hand available for sale or used in production at any given time within a business.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and overhead) in the cost of goods sold and treats fixed overhead expenses as period costs.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards used in the United States for preparing financial statements.

Variable Costs

Costs that vary directly with the level of production or sales volume.