Marty and Cindy Are Married and Both Are Professors at a Local

question 105

Multiple Choice

Marty and Cindy are married and both are professors at a local college.They contribute money to various organizations each year and file a joint return.Their adjusted gross income for 2014 is $100,000.They contributed to the following organizations in 2014: • $3,500 to the Sierra club
• $10,000 to the Red Cross
• $2,000 to a local political candidate
• $11,000 to cancer research foundation
• Donated clothing to Goodwill.(Marty purchased
The items for $850,but the thrift shop value of the
Same items at a local second-hand store is equal to $60.)
How much can Cindy and Marty deduct as charitable contributions for the year 2014?

• A)$26,560.
• B)$26,500.
• C)$25,710.
• D)$24,560.

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Definitions:

Standard Costs

Predetermined costs for manufacturing a product, used for budgeting, cost control, and performance evaluation.

Cash Account

An accounting ledger that tracks the money a company spends (cash out) and receives (cash in).

Cash Account

An account that tracks the amount of cash available at any given point in time; it reflects all cash inflows and outflows.

Raw Materials Purchases

This refers to the total cost incurred by a company to buy the raw materials needed for production.