Gwen Has Written Acknowledgments for Each of the Following Charitable

question 115

Essay

Gwen has written acknowledgments for each of the following charitable contributions during the current year: $\begin{array}{llcc} \text { Cash contributions to her church } & \$1,250 \\ \text {Contribution of used clothes and household items in good condition to } &\\ \text { AMVETS, valued at thrift shop prices (original cost, \(\$ 1,000\) ) } &\$200\\ \text { Gwen's estimate of the value of her time donated to a local soup kitchen } &\$800\\ \text { Cash donated to homeless people asking for money for food } &\$75\\\end{array}$







What is Gwen's charitable contribution deduction for the current year?

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Definitions:

Equipment Sale

The process of selling off business-owned equipment, either to upgrade to newer assets or to liquidate assets for cash.

Cash Dividend

A payment made by a company out of its earnings to its shareholders in cash.

Financing Activities

Transactions that involve raising funds to finance the company's operations and repaying debt; part of a firm's financial operations detailed on the statement of cash flows.

Principal Repayment

The portion of a loan payment that goes toward reducing the original amount borrowed, not including interest.