During 2011,Ralph Made the Following Contributions to the University of Oregon

question 43

Multiple Choice

During 2011,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 2011 is $189,000.What is Ralph's charitable contribution deduction for 2011?

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

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Definitions:

Indirect Labor

Labor costs not directly associated with the production of goods or services, such as salaries of supervisors or maintenance staff.

Product Costs

All costs directly tied to the creation of a product, including materials, labor, and allocated overhead.

Materials Overhead

Costs related to the production process that are not directly tied to the product being manufactured, such as factory supplies and equipment maintenance.

Raw Materials

Basic materials used in the production process to create goods and products.