In the current year, Jerry pays $8,000 to become a charter member of Mammoth University's Athletic Council.The membership ensures that Jerry will receive choice seating at all of Mammoth's home basketball games.Also this year, Jerry pays $2,200 (the regular retail price) for season tickets for himself and his wife.For these items, how much qualifies as a charitable contribution?
A)$0
B)$6,400
C)$8,000
D)$10,200
E)None of these

Question

Quizplus · Accepted Answer

The $8,000 payment to become a charter member of the Athletic Council does not qualify as a charitable contribution because Jerry received something in return (choice seating at all home basketball games). Therefore, the amount that qualifies as a charitable contribution is $0.

In the Current Year, Jerry Pays $8,000 to Become a Charter