During 2012, Ralph Made the Following Contributions to the University

question 86

Multiple Choice

During 2012, Ralph made the following contributions to the University of Oregon (a qualified charitable organization) : Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000. Ralph's AGI for 2012 is $189,000. What is Ralph's charitable contribution deduction for 2012?

• A)$56,700.
• B)$63,000.
• C)$94,500.
• D)$157,500.
• E)None of the above.

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Definitions:

Average Fixed Cost

The fixed costs of production (costs that do not change with output) divided by the quantity of output produced, which decreases as production increases.

Total Costs

The aggregate financial expense incurred in the production of goods or services, including both fixed and variable costs.

Average Fixed Costs

Production's steady costs, unchanged by the amount of production, divided across the output quantity.

Total Variable Costs

The overall expenses that vary directly with the level of production output, such as raw materials and labor.