MsBjorn's Only Contribution This Year Was a Donation of Marketable

question 78

Multiple Choice

Ms.Bjorn's only contribution this year was a donation of marketable securities (FMV $600,000; tax basis $273,000) to a public charity.Her AGI was $814,000.Which of the following statements is true?

• A)Ms.Bjorn's charitable contribution deduction is limited to $407,000,and she has a $193,000 contribution carryover to future years.
• B)Ms.Bjorn's charitable contribution deduction is $273,000.
• C)Ms.Bjorn's charitable contribution deduction is limited to $407,000.The $193,000 nondeductible amount will never result in a tax benefit.
• D)Ms.Bjorn's charitable contribution deduction is $600,000.

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Definitions:

Availability Heuristic

A cognitive shortcut based on the first examples that pop up in one's thoughts when contemplating a particular subject, idea, strategy, or choice.

Explicit Bias

Refers to the attitudes and beliefs we have about a person or group on a conscious level.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those of other groups.

Ingroup Bias

The tendency for people to give preferential treatment to others they perceive to be members of their own groups.