Question

32. Aki's records contain the following information:

1.   Donated stock having a fair market value of $4,000 to a qualified charitable organization. He acquired the stock six months previously at a cost of $3,000.

2.   Paid $1,200 to a church school as a requirement for the enrollment of his son.

3.   Paid $475 for annual homeowner's association dues.

4.   Drove 500 miles in his personal auto. The travel was directly related to volunteer services he performed for her church.

How much can Aki deduct as a charitable contribution?

A) $1,250

B) $3,070  

C) $3,356

D) $4,000

33. Blue Grocery, Inc., a C corporation with high taxable income, donates some of its inventory to the Local Food Bank (a charitable organization) which distributes food to the needy. At the time of the contribution, the FMV of the inventory was $20,000, and Blue Grocery's basis was $6,000. Blue Grocery will be allowed a charitable contribution deduction of

A) $6,000.

B) $12,000.

C) $14,000.

D) $20,000.

34. For non-cash charitable donations, an appraisal will be required for donations valued at more than

A) $250.

B) $500.

C) $5,000.

D) $50,000.

Answer 1