Shara's 2017 Taxable Income Is $39,000 Before Considering Charitable Contributions

question 31

Multiple Choice

Shara's 2017 taxable income is $39,000 before considering charitable contributions.Shara is a single individual.She makes a donation of $5,000 to the American Heart Association in December 2017.By how much did Shara's marginal tax rate decline simply because of the donation?

• A)0%
• B)7%
• C)3%
• D)5%
• E)10%

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Definitions:

Overapplied

A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

Underapplied

A condition where allocated manufacturing overhead for a period is less than the actual overhead incurred, causing unabsorbed overhead costs.

Job-Order Costing System

A cost accounting system that assigns costs to specific batches or job orders, making it easier to track the cost of producing each item or batch.

Overapplied

Occurs when the allocated manufacturing costs exceed the actual manufacturing costs incurred.