You Wish to Make a Charitable Contribution of $2,000 to a Qualified

question 23

Multiple Choice

You wish to make a charitable contribution of $2,000 to a qualified organization.You are currently in the 28 percent marginal tax bracket.By how much would this contribution lower your tax bill assuming your other itemized deductions exceed the standard deduction?

• A)$280.00
• B)$560.00
• C)$1,440.00
• D)$2,000.00

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Definitions:

Cash Dividends

Earnings given by a corporation to its investors, usually in the form of profit sharing.

Market Value

The current price at which an asset or service can be bought or sold, often used in reference to the market price of stocks or other securities.

Discount on Common Stock

A reduction offered on the par or stated value of common stock, typically related to issuance below market value.

Par Value

The nominal or face value of a stock or bond, set at the time of its issuance.