Patrick's Records for the Current Year Contain the Following Information

question 117

Multiple Choice

Patrick's records for the current year contain the following information. -He donated stock having a fair market value of $5,000 to a qualified charitable organization.Patrick acquired the stock two years ago at a cost of $3,000.
-He paid $1,000 for membership in an athletic scholarship program maintained by the university.The only benefit of the membership is that Patrick is entitled to purchase a season ticket to the university's home football games.
-He also donated $7,500 cash to a qualified charitable organization.Patrick's adjusted gross income for the year is $100,000.
What is the amount of his charitable contribution deduction?

• A)$11,300
• B)$11,500
• C)$13,300
• D)$13,500

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Definitions:

Interest Rate Risk

The risk of changes in interest rates that can adversely affect the value of an investment.

Term Structure

The relationship between interest rates or bond yields and different terms or maturities, depicted in a curve.

Maturity Date

The specific date on which the principal or final payment of a debt instrument is due to be paid to the investors or lenders.

Nominal Rate

The interest rate stated on a bond or loan agreement without adjustment for inflation.