Question

This year Darcy made the following charitable contributions:

Donee Property Cost FMV
State University IBM stock $ 15,000 $ 10,500
Salvation Army Clothes 2,500 500
State Art Museum Painting 5,000 45,000
City Hospital Cash 8,000
Required:
(a) Determine the maximum amount of charitable deduction for Darcy's contribution of the painting if her AGI is $80,000 this year. You may assume that both the stock and painting have been owned for 10 years and the painting is used in the State Art Museum's charitable purpose.

Answer 1

Step-by-step explanation:

the pictures attached herewith answers all the solution to the above problem and its so explanatory enough. I hope its helps you, thank you.

Answer 2

21,000 for painting and 40,000 for the total.

Step-by-step explanation:

Amount of cash = 80000×60/100

= 80000×0.6

= 48000

The cash deduction is 8000

Stocks and clothes:

=80000×50/100

= 80000×0.5

= 40000

The amount derived from stocks and clothes minus cash deduction is:

40000-8000

= 32000

Therefore, that amount for painting is:

= 32000-10500-500

= 21000

The total amount is:

= 21000+10500+500+8000

= 40000

Thus, the total amount is 40000 and amount for painting is 21000.