For the current year,Gina Hestopolis had adjusted gross income of $100,000.During the year,she contributed $6,000 to her church and an additional $3,000 to qualified charities.She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church.The church intends to display the religious artwork in the church foyer.If Gina chooses to itemize her deductions,what is the amount of her deductible charitable contribution in the current year?
A)$9,000.
B)$20,000.
C)$39,000.
D)$49,000.

Question

Quizplus · Accepted Answer

The deductible charitable contribution is calculated by adding up the cash donations and the fair market value of the non-cash donation. In this case, the cash donations total $9,000 ($6,000 to her church and $3,000 to qualified charities). The non-cash donation of the artwork has a fair market value of $60,000, which exceeds the 30% limit of Gina's AGI ($100,000 x 30% = $30,000). However, because the artwork is being donated to a church for use in its charitable activities, the limit is increased to 50% of her AGI, or $50,000. Therefore, the total deductible charitable contribution is $39,000 ($9,000 + $30,000).

For the Current Year,Gina Hestopolis Had Adjusted Gross Income of $100,000.During