During 2013,Ralph made the following contributions to the University of Oregon (a qualified charitable organization): Ralph acquired the stock in Raptor,Inc.,as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for 2013 is $189,000.What is Ralph's charitable contribution deduction for 2013?
A)$56,700.
B)$63,000.
C)$94,500.
D)$157,500.
E)None of the above.

Question

During 2013,Ralph made the following contributions to the University of Oregon (a qualified charitable organization):  Ralph acquired the stock in Raptor,Inc.,as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for 2013 is $189,000.What is Ralph's charitable contribution deduction for 2013?
A)$56,700. 
B)$63,000. 
C)$94,500. 
D)$157,500. 
E)None of the above.

Quizplus · Accepted Answer

The amount of the charitable contribution deduction is the fair market value of the contributed property. In this case, Ralph contributed stock in Raptor, Inc., so the fair market value is the average of the high and low prices on the date of the contribution, which was $189 per share. Ralph contributed 300 shares, so the fair market value of the contribution was $56,700 (300 shares x $189 per share). Since Ralph's AGI is $189,000, he can deduct up to 30% of that amount in charitable contributions, which is $56,700. Therefore, the charitable contribution deduction for 2013 is $56,700.

During 2013,Ralph Made the Following Contributions to the University of Oregon