Larry recorded the following donations this year: $500 cash to a family in need
$2,400 to a church
$500 cash to a political campaign
To the Salvation Army household items that originally cost $1,200 but are worth $300.
What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Question

Quizplus · Accepted Answer

Larry's maximum allowable charitable contribution is calculated by taking 60% of his AGI which is $60,000 x 0.6 = $36,000. 
Therefore, the maximum allowable charitable contribution for Larry is $3,600. 
However, the donations of household items must be adjusted to their fair market value, which is $300, not their original cost of $1,200. 
So, Larry's total contributions are $500 + $2,400 + $500 + $300 = $3,700. 
Since the maximum allowable charitable contribution is $3,600, Larry's charitable contribution is limited to $3,600.  
Therefore, the correct answer is C) $2,700. ($3,700 - $1,000 (household items adjusted value) = $2,700)

Larry Recorded the Following Donations This Year: $500 Cash to a Family