Larry recorded the following donations this year: $520 cash to a family in need
$2,420 to a church
$520 cash to a political campaign
To the Salvation Army household items that originally cost $1,220 but are worth $320.
What is Larry's maximum allowable charitable contribution if his AGI is $60,200?

Question

Quizplus · Accepted Answer

Larry's maximum allowable charitable contribution is calculated by determining the percentage of his AGI that can be claimed as charitable contributions. In this case, Larry's AGI is $60,200.

The maximum amount of charitable contributions that can be claimed is generally limited to 60% of one's AGI.

To calculate Larry's maximum allowable charitable contribution:

- Add up all of the donations: $520 + $2,420 + $520 + $320 = $3,780 
- Determine the 60% limit: $60,200 x 0.6 = $36,120 
- Compare the total donations to the 60% limit: $3,780 < $36,120 
- Therefore, Larry's maximum allowable charitable contribution is $3,780.

The only answer choice that is within this limit is (C) $2,740. The other answer choices are either too high or too low.

Larry Recorded the Following Donations This Year: $520 Cash to a Family