An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year.
View the step-by-step solution to:

Question

1.An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the

taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the artwork?

a.     The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year.

b.     The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year.

c.     The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year.

d.     The taxpayer deducts $50,000 in the current year and carries over $0 to the next year.

e.     None of the above statements could be accurate with respect to the taxpayer's charitable contribution deduction.

2.A taxpayer donates land to his church. The taxpayer paid $55,000 for the land several years ago. It is worth $75,000 at the time it was donated. This was the only charitable contribution the taxpayer made during the year. If the taxpayer's AGI is $100,000, which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the land?

a.     The taxpayer deducts $55,000 in the current year.

b.     The taxpayer deducts $50,000 in the current year and carries over $25,000 to the next tax year.

c.     The taxpayer deducts $30,000 in the current year and carries over $25,000 to the next tax year.

d.     The taxpayer deducts $30,000 in the current year and carries over $45,000 to the next tax year.

e.     Both a. and d.


3.   The Martins file a joint return. Their AGI is $375,800. The Martins report the following amounts on Schedule A: home mortgage interest, $12,920; real estate taxes, $5,100; and $7,000 of cash gifts to qualified charities. The amount the Martins will deduct from AGI for their itemized deductions is:

a.     $23,160.

b.     $13.746.

c.     $18,584.

d.     $25,020.

e.     $21,491.

4.   A cash-basis sole proprietor had the following cash receipts and disbursement for the year:

Net sales

$80,000

Cost of goods sold

40,000

Operating expenses

20,000

Employee payroll taxes

3,000

Dividend income

900

Interest income from a personal savings account

200

What is the amount of reported net profit reported on Schedule C?

a.     $20,000

b.     $40,000

c.     $17,000

d.     $15,000

e.     $18,000


Allen owns land with an adjusted basis of $610,000, subject to a mortgage of $350,000. On April 1, Allen sold his land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000. What is the amount realized?

           a.        $1,250,000

           b.        $1,370,000

    c. $1,720,000

           d.        $1,820,000

         e. None of the above is correct

Top Answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question