Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 20, Problem 41P
a.
To determine
Determine the amount of contribution that can be claimed as a deduction, if Company A is a sole proprietorship.
b.
To determine
Determine the amount of contribution that can be claimed as a deduction, if Company A is a C Corporation.
c.
To determine
Determine the amount of contribution that can be claimed as a deduction, if Company A is a C Corporation and the fair market value of the property was $121,000 instead of $90,000.
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Students have asked these similar questions
-Calvin’s AGI is $110,000, but the State Museum told Calvin that it plans to sell the painting. What is the Charitable contribution deduction?
Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display.
a. What is the amount of Maple Corp.'s charitable contribution deduction for the painting (assuming income limitations do not apply)?
Charitable contribution deduction
Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's other woodwork. He calculated his costs as follows:
Wood
$1,000
Other materials
$300
Rent for workshop
$500
Time and services
$1,700
This is his only charitable contribution. He itemizes deductions and has an adjusted gross income of $80,000.
What is the maximum current year income tax deduction allowable for the client's charitable contribution?
A)$3,500
B)$1,800
C)$500
D)$1,300
Chapter 20 Solutions
Individual Income Taxes
Ch. 20 - Prob. 1DQCh. 20 - LO.1 Sylvia and Trang want to enter into business...Ch. 20 - Prob. 3DQCh. 20 - Prob. 4DQCh. 20 - Prob. 5DQCh. 20 - LO.3, 4, 5 Contrast the income taxation of...Ch. 20 - LO.3, 8, 9 The taxpayer has generated excess...Ch. 20 - Prob. 8DQCh. 20 - Prob. 9DQCh. 20 - Prob. 10DQ
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