Final answer:
Morgan's potential deductions for the cash and stock donations should be the sum of the allowed contributions based on the AGI limits which are $5,500 for cash and $24,000 for stock, totaling $29,500. None of the provided options match this calculated deduction.
Step-by-step explanation:
The question involves calculating Morgan's potential deduction for donations made to his church throughout the year. The donations were made in two forms: cash and stock. The total cash donation was $5,500, while the stock was worth $50,000, which was purchased six years ago for $38,000. Since Morgan's AGI (Adjusted Gross Income) for the year is $80,000, and considering the IRS allows charitable deductions of up to 60% of AGI for cash contributions and up to 30% for appreciated assets such as stock, Morgan's potential cash deduction is $5,500. The stock donation is valued at the fair market value since it was held for more than a year, equating to the full $50,000. However, since the deduction for the stock cannot exceed 30% of the AGI, this would be $24,000 (30% of $80,000 AGI). Therefore, the total potential deduction would be the sum of the cash donation and the maximum allowed stock deduction, which equals $29,500. However, this is not one of the provided options. Hence, it seems there might be an error in the question or the available options, as none of them match the calculated deduction.