Question

Chelsea graduated from the University of Alabama. She contributes $2,000 to meet the requirements for purchasing season tickets costing $500. How much is her deductible charitable contribution for the year?

A) $500
B) $2,500
C) $1,500
D) $2,000

Answer 1

Chelsea's deductible charitable contribution after purchasing season tickets would be $1,500, calculated by deducting the value of the tickets from the total contribution made.

Step-by-step explanation:

The question relates to determining the deductible portion of a charitable contribution when receiving benefits in return, specifically in the scenario where Chelsea contributes money for the privilege of purchasing season tickets. To calculate the deductible charitable contribution, you subtract the value of the benefit received (the season tickets) from the total contribution. Chelsea contributed $2,000 and received season tickets worth $500. Therefore, her deductible charitable contribution would be $2,000 - $500 = $1,500.