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:

Net Income

The total revenue of a business minus total expenses, representing the profit made during a specific period.

Uncollectible Receivables

Accounts receivable that are considered to be uncollectable and are treated as a loss because payment is no longer expected.

Percent of Sales Method

A financial forecasting model that estimates changes in balance sheet and income statement accounts as a direct percentage of sales.

Uncollectibles

Debts owed to a company that are considered to be unlikely to be paid and written off as a loss.