Hannah Makes the Following Charitable Donations in the Current Year

question 23

Multiple Choice

Hannah makes the following charitable donations in the current year:
​

The HBM stock and the inventory were given to Hannah's church,and the baseball card collection was given to the United Way.Both donees promptly sold the property for the stated fair market value.Disregarding percentage limitations,Hannah's current charitable contribution deduction is:

• A)$28,000.
• B)$51,200.
• C)$52,000.
• D)$67,200.
• E)None of the above.

---

Definitions:

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-term debts with its current assets.

Permanent Inventory Loss

Losses resulting from discrepancies between actual stock levels and recorded inventory due to theft, damage, or miscounting that cannot be recovered.

Quarterly Income Statement

A financial report that shows the revenue, expenses, and net income of a company over a three-month period.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or line items) in a balance sheet is represented as a proportion of the total account.