Which of the Following Statements Is True Regarding Documentation Requirements

question 99

Multiple Choice

Which of the following statements is true regarding documentation requirements for charitable contributions?

• A)If the total deduction for all noncash contributions for the year is more than $500,Section A of Form 8283,Noncash Charitable Contributions,must be completed.
• B)A noncash contribution of less than $250 must be supported by a cancelled check,or a receipt,or other written acknowledgement from the charitable organization.
• C)A contribution charged to a credit card is considered a cash contribution for purposes of documentation requirements.
• D)All of these are true.

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Definitions:

Liquidated Debt

A fixed and settled debt amount that is acknowledged by both the debtor and the creditor.

Preexisting Duty

A legal principle that states a promise to do something that one is already legally obligated to do is not sufficient consideration for a new contract.

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.