Donald and May Husband and Wife)contributed $15,000 in Cash to Their

question 47

Multiple Choice

Donald and May husband and wife) contributed $15,000 in cash to their synagogue during 2016.They also donated $3,000 to a private foundation which is a nonprofit cemetery organization.They knew a 30% limit applies to contributions to such foundations.Their adjusted gross income for the year 2016 was $30,000.Donald and May's deductible contribution for the year 2016 and any carryover to next year is:

• A)$15,000 with $3,000 carryover to next year.
• B)$15,000 with $2,100 carryover to next year.
• C)$7,500 with $2,100 carryover to next year.
• D)$18,000 with $0 carryover to next year.

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Definitions:

Subsidiary

A subsidiary is a company that is controlled by another company, referred to as the parent company, through ownership of more than half of its voting stock.

Full Goodwill Method

An accounting approach where the total fair value of goodwill is recorded in the books, even if the parent company does not own 100% of a subsidiary.

Non-controlling Interest

The portion of equity ownership in a subsidiary not held by the parent company, reflecting minority shareholders' stake in the subsidiary's net assets.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing parties in an arm's length transaction.