Grace Has AGI of $60,000 in 2016 and 2017

question 20

Multiple Choice

Grace has AGI of $60,000 in 2016 and 2017.She makes cash contributions to public charities of $34,000 in 2016 and $31,000 in 2017.Grace's charitable contribution carryover to 2018 is

• A)$0.
• B)$1,000.
• C)$4,000.
• D)$5,000.

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Definitions:

Equivalent Units

A concept in cost accounting used to denote the amount of work done on incomplete units, expressed in terms of fully completed units.

Physical Units

A measure of production output or inventory in terms of the actual number of units, as opposed to the cost or value of the units.

Percentage of Completion

A method of accounting for long-term contracts in which income is recognized as a proportion of work completed at certain stages.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units they represent.