Question

During the current year, Ralph made the following contributions to the University of Oregon (a qualified charitable organization):

Cash $63,000 Stock in Raptor, Inc. (a publicly traded corporation) 94,500
Ralph acquired the stock in Raptor, Inc., as an investment fourteen months ago at a cost of $42,000. Ralph’s AGI for the year is $189,000. What is Ralph’s charitable contribution deduction for the current year?
a. $56,700
b. $63,000
c. $94,500
d. $157,500
e. None of the above

Answer 1

c. $94,500

Step-by-step explanation:

Ralph's potential charitable contribution for year is Cash $63,000 and $Stock in Raptor Inc. $94,500.

But allowable contribution for the year is 50% of AGI which is $189,000*50% = $94,500

So Ralph’s charitable contribution deduction for the current year is $94,500