Deck 6: Individual Deductions

Question 1

The profit motive distinguishes "business" activities from "personal" activities.

Answer 1

True

Question 2

The medical expense deduction is designed to provide relief for doctors and medical practitioners.

Answer 2

False

Question 3

All business expense deductions are claimed as "above the line" deductions.

Answer 3

False

Question 4

Qualified education expenses for purposes of the deduction of interest on educational loans are expenses paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent to attend a post-secondary institution of higher education.

Question 5

The phrase "ordinary and necessary" means that an expense must be appropriate andhelpful for generating a profit.

Question 6

Taxpayers are allowed to deduct mortgage interest on up to $1,000,000 of acquisition debt for their qualified residence and on up to $500,000 of home-equity debt.

Question 7

The definition of qualifying expenses is more restrictive for the qualified educational expense deduction than it is for the education loan interest expense deduction.

Question 8

To deduct a moving expense, the taxpayer must be employed or self-employed for aspecific amount of time after the move.

Question 9

Self-employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self-employment taxes paid.

Question 10

Rental or royalty expenses are deductible "for" AGI.

Question 11

Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.

Question 12

All investment expenses are itemized deductions.

Question 13

To be deductible, business expenses must be directly related to a business activity.

Question 14

All reasonable moving expenses are deductible if the move is a minimum of 35 miles indistance from the taxpayer's old residence to the taxpayer's new residence.

Question 15

An individual who forfeits a penalty for prematurely withdrawing a certificate of deposit(CD) is allowed to net the penalty against the interest income from the CD.

Question 16

Self-employed taxpayers can deduct the cost of health insurance as long as they do notactually participate in their spouses' employer-provided health plan.

Question 17

The itemized deduction for taxes includes all types of state, local, and foreign taxes.

Question 18

Taxpayers may elect to deduct state and local sales taxes instead of deducting state and local income taxes.

Question 19

Deductible medical expenses include payments to medical care providers such as doctors, dentists, and nurses and medical care facilities such as hospitals.

Question 20

The deduction for medical expenses is limited to the amount of unreimbursed qualifying medical expenses paid during the year reduced by two percent of the taxpayer's AGI.

Question 21

Which of the following is a true statement?

A) Business deductions are one of the most common deductions for AGI but they are not readily visible on the front of Form 1040.
B) Unreimbursed employee business expenses are deductible as miscellaneous itemized deductions.
C) With one exception, investment expenses are deductible as itemized deductions.
D) The distinction between business and investment expenses is critical for determining whether a deduction is claimed above the line (for AGI) or below the line (itemized).
E) All of the choices are true.

Question 22

The deduction to individual taxpayers for charitable contributions paid in cash made to public charities is limited to ten percent of the taxpayer's AGI whereas casualty losses on personal assets are only deductible to the extent the losses exceed ten percent of the taxpayer's AGI.

Question 23

To qualify as a charitable deduction the donation must be made by cash or by check.

Question 24

Congress allows self-employed taxpayers to deduct the cost of health insurance above the line (for AGI) because:

A) this deduction provides a measure of equity between employees and the self-employed.
B) employers are allowed to deduct social security (FICA) taxes as a business expense.
C) health insurance premiums cannot be deducted otherwise.
D) self-employed taxpayers need an alternate mechanism for reducing the cost of health care.
E) None of the choices are correct.

Question 25

In general, taxpayers are allowed to deduct the fair market value of long-term capital gain property on the date of the donation to a qualified charitable organization.

Question 26

Which of the following is a true statement?

A) Taxpayers are not allowed to receive a moving allowance from their employers.
B) Self-employed taxpayers are allowed to deduct health care premiums even if the taxpayer is eligible to participate in an employer-provided health plan.
C) The deduction for moving expenses is subject to a phase-out limitation.
D) The deduction for interest on educational loans is subject to a phase-out limitation.
E) All of the choices are false.

Question 27

Taxpayers are allowed to deduct all ordinary and necessary expenses incurred in connection with determining their tax obligations imposed by federal authorities.

Question 28

Mason paid $4,100 of interest on a loan that paid tuition for him to attend a privateuniversity this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

A) $2,000.
B) $2,667.
C) $4,100.
D) $4,000.
E) None of the choices are correct.

Question 29

Taxpayers filing single and taxpayers filing married separate have the same basic standard deduction amount.

Question 30

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Question 31

Which of the following is a true statement?

A) All business expenses are deducted for AGI.
B) Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.
C) To deduct expenses associated with any profit motivated activity, taxpayers must maintain a high level of involvement or effort in the activity throughout the year.
D) Business activities never require a relatively high level of involvement or effort from the taxpayer.
E) All of the choices are true.

Question 32

Which of the following is a true statement?

A) For purposes of the deduction for educational interest, expenses do not include expenses for room, board and travel.
B) For purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent.
C) A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible as an investment expense.
D) The maximum deduction for interest expense on qualified education loans is $6,000.
E) All of the choices are false.

Question 33

An individual who is eligible to be claimed as a dependent on another's return and has$1,000 of earned income may claim a standard deduction of $1,350.

Question 34

Bunching itemized deductions is one form of tax evasion.

Question 35

Unreimbursed employee business expenses, investment expenses, hobby expenses, and certain other expenses are classified as miscellaneous itemized deductions and aredeductible only to the extent that their sum exceeds 2% of the taxpayer's AGI.

Question 36

Which of the following is a true statement?

A) To satisfy the distance test, the distance from the taxpayer's old residence to the new place of work must be at least 50 miles more than the distance from the old
Residence to the old place of work.
B) To satisfy the business test, the taxpayer must be employed full-time for 45 of the first 52 weeks after the move.
C) The moving expense deduction is restricted to expenses associated with moving personal possessions to the new residence.
D) Individuals qualify for the moving expense deduction only if they change employers.
E) All of the choices are true.

Question 37

This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married filing joint and reports modified AGI of $147,000. What is Jong's deduction for interest expense on an educational loan?

A) $2,500.
B) $1,500.
C) $1,000.
D) $3,000.
E) None of the choices are correct.

Question 38

This year Riley files single and reports modified AGI of $71,000. Riley paid $1,200 of interest on a qualified education loan. What amounts can Riley deduct for qualifying education interest?

A) The deduction for qualifying education interest is $720.
B) The deduction for qualifying education interest is $200.
C) The deduction for qualifying education interest is $1,000.
D) The deduction for qualifying education interest is $1,200.
E) None of the choices are correct.

Question 39

The deduction for investment interest in excess of the net investment income carries forward to the subsequent year.

Question 40

In 2017, personal and dependency exemptions are $6,350 for single taxpayers.

Question 41

Which of the following taxes will not qualify as an itemized deduction?

A) real estate taxes on a residence.
B) gasoline taxes on personal travel.
C) state, local, and foreign income taxes.
D) personal property taxes assessed on the value of specific property.
E) None of the choices qualify as an itemized deduction.

Question 42

This fall Manfred enrolled in the law school at State University (a qualified educational institution) and paid $6,200 in tuition. Until his enrollment Manfred worked as a stock broker and this year he reports $70,000 in wages. If Manfred files single and reports no other items of income or expense how much of the tuition can he deduct as a business expense?

A) Manfred can deduct $6,200 as a miscellaneous itemized deduction.
B) Manfred can deduct half of his tuition as a miscellaneous itemized deduction.
C) Manfred can deduct half of his tuition for AGI.
D) Manfred can deduct $6,200 for AGI.
E) None - the tuition is not deductible as a business expense.

Question 43

Which of the following costs are NOT deductible as an itemized medical expense?

A) The cost of insurance for long-term care services.
B) The cost of eyeglasses.
C) Payments to a hospital.
D) Transportation for medical purposes.
E) All of the choices are deductible as medical expenses.

Question 44

Han is a self-employed carpenter and his wife, Christine, works full-time as a grade school teacher. Han paid $525 for carpentry tools and supplies, and Christine paid$3,600 as her share of health insurance premiums (not with pre-tax dollars) for Han and herself in a qualified plan provided by the school district (not through an exchange). Which of the following is a true statement?

A) Both expenditures are deductible for AGI.
B) Both expenditures are itemized deductions.
C) The tools and supplies are an itemized deduction but the health insurance is deductible for AGI.
D) The tools and supplies are deductible for AGI while the health insurance is an itemized deduction.
E) Neither of the expenditures is deductible.

Question 45

This fall Marsha and Jeff paid $5,000 for their son Josh's tuition and fees at State University (a qualified education institution). They also paid $1,000 for Josh's books. How much of these two payments can Marsha and Jeff deduct this year, assuming Josh is their dependent and their modified AGI is $135,000? (Assume the 2016 rules apply for purposes of the qualified education expense deduction.)

A) Marsha and Jeff can deduct $2,000 for AGI.
B) Marsha and Jeff can deduct $4,000 for AGI.
C) Marsha and Jeff can deduct $2,500 for AGI.
D) Marsha and Jeff can deduct $5,000 for AGI.
E) None - the tuition is not deductible.

Question 46

Jill currently lives in the suburbs and commutes 25 miles to her office in downtown Freeport. She is considering quitting her current job to look for new employment in the downtown area. Which of the following statements best describes how Jill can satisfy the distance test for deducting moving expenses if she accepts a new job in downtown Freeport?

A) Jill must move 25 miles east from downtown Freeport.
B) Jill must move at least 25 miles further away from downtown Freeport.
C) Jill must move 50 miles further away from downtown Freeport.
D) Jill cannot satisfy the distance test if she accepts a job in downtown Freeport.
E) Jill need not move her residence because she is starting a new job.

Question 47

This year Amanda paid $749 in Federal gift taxes on a gratuitous transfer to her nephew.Amanda lives in Texas and does not pay any state or local income taxes. Which of the following is a true statement?

A) Amanda must include Federal gift taxes with other miscellaneous itemized deductions.
B) Amanda cannot deduct Federal gift taxes.
C) Amanda can deduct Federal gift taxes for AGI.
D) Amanda can deduct Federal gift taxes paid as an itemized deduction.
E) None of the choices are true.

Question 48

Which of the following is a true statement?

A) A divorced taxpayer can deduct medical expenses incurred for a child even if the child is claimed as a dependent by the former spouse.
B) A taxpayer can deduct medical expenses incurred for members of his family who are dependents.
C) A taxpayer can deduct medical expenses incurred for a qualified relative even if the relative does not meet the gross income test.
D) Deductible medical expenses include long-term care services for disabled spouses and dependents.
E) All of the choices are true.

Question 49

Grace is a single medical student at State University, a qualified educational institution.This year Grace paid university tuition of $12,000. Grace works part-time at the University library, and this year she reports $15,000 of salary and no other items of income or expense. Which of the following is a true statement?

A) Grace can deduct all of her tuition for AGI as a business expense.
B) Grace can only deduct half of her tuition for AGI as a business expense.
C) Grace can deduct all of her tuition as a miscellaneous itemized deduction.
D) Grace can only deduct half of her tuition as a miscellaneous itemized deduction.
E) All of the choices are false.

Question 50

Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Max deduct as a qualifying education expense if he files single andreports modified AGI of $60,000 (assume the 2016 rules apply for purposes of the qualified education expense deduction)?

A) $0.
B) $4,000.
C) $5,000.
D) $2,000.
E) None of the choices are correct.

Question 51

Bruce is employed as an executive and his wife, Marie, is a self-employed realtor.Besides Bruce's salary, Bruce and Marie own a warehouse that they rent to a local business for storage. This year they paid $1,250 for electric service in the warehouse. Marie also paid self-employment tax of $6,200 and Bruce had $7,000 of Social Security taxes withheld from his pay. Marie paid $45 fee to rent a safe deposit box to storerecords associated with her realty operation. Which of the following is a true statement?

A) The self-employment tax is not deductible.
B) The safe deposit fee and the electric bill are deductible for AGI.
C) One-half of the social security tax is deductible for AGI.
D) Only the electric bill is deductible for AGI.
E) None of the choices are true.

Question 52

Ned is a head of household with a dependent son, Todd, who is a full-time student. This yea5r7N) ed made the following expenditures related to Todd's support: What amount can Ned include in his itemized deductions?

A) $2,050 included in Ned's miscellaneous itemized deductions.
B) $950 included in Ned's miscellaneous itemized deductions.
C) $600 included in Ned's medical expenses.
D) $1,700 included in Ned's miscellaneous itemized deductions.
E) None of the choices are correct.

Question 53

Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exchange). Under which of the following alternative conditions can Hector deduct the cost of the premiums for AGI?

A) Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.
B) Neither Hector nor his spouse participates in an employer-sponsored plan although both are eligible to participate in a plan.
C) Hector can deduct the health insurance premiums regardless of the insurance status of his spouse.
D) Hector chose not to participate in the employer-sponsored plan of his spouse.
E) None of the choices - health insurance premiums can only be deducted as an itemized deduction.

Question 54

This fall, Josh paid $5,000 for his tuition and fees at State University (a qualifiededucation institution). Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent. Marsha and Jeff's modified AGI is $100,000. How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year?(Assume the 2016 rules apply for purposes of the qualified education expense deduction.)

A) Marsha and Jeff can deduct $2,000 for AGI.
B) Marsha and Jeff can deduct $5,000 for AGI.
C) Marsha and Jeff can deduct $2,500 for AGI.
D) Marsha and Jeff can deduct $4,000 for AGI.
E) None - the tuition is not deductible by Marsha and Jeff.

Question 55

Which of the following costs are deductible as an itemized medical expense?

A) Medical expenses incurred to prevent disease.
B) The cost of prescription medicine and over-the-counter drugs.
C) Medical expenses reimbursed by health insurance.
D) The cost of elective cosmetic surgery.
E) None of the costs are deductible.

Question 56

Casey currently commutes 35 miles to work in the city. He is considering a newassignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to accept the assignment, but he thinks it might require that he move to the other side of the city. Which of the following is a true statement?

A) If Casey's move qualifies for the moving expense deduction, he can deduct the cost of meals while en route to his new residence.
B) To qualify for a moving expense deduction the new commute from Casey's current residence would need to be a minimum of 85 miles.
C) If Casey's move qualifies for the moving expense deduction, he can deduct half the cost of meals while en route to his new residence.
D) Casey can deduct moving expenses if the distance between his current residence and his new assignment is at least 50 miles.
E) All of the choices are false.

Question 57

Lewis is an unmarried law student at State University, a qualified educational institution.Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition. This year Lewis paid $1,500 of interest on the loan. Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

A) Lewis can only deduct $1,000 of the interest on his student loan for AGI.
B) Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.
C) Lewis can deduct all the interest on his student loan as an itemized deduction.
D) Lewis can deduct all the interest on his student loan for AGI.
E) All of the choices are false.

Question 58

This fall Millie finally repaid her student loan. She originally borrowed the money to pay tuition several years ago when she attended at State University (a qualified educational institution). This year Millie paid a total of $2,400 of interest on the loan. If Millie files single and reports $70,000 of income and no other items of income or expense howmuch of the interest can she deduct?

A) Millie can deduct $2,400 for AGI.
B) Millie can deduct $2,400 as an itemized deduction.
C) Millie can deduct $1,600 for AGI.
D) Millie can deduct $800 for AGI.
E) None - the tuition is not deductible.

Question 59

Opal fell on the ice and injured her hip this winter. As a result she paid $3,000 for a visit to the hospital emergency room and $750 for follow-up visits with her doctor. While she recuperated, Opal paid $500 for prescription medicine and $600 to a therapist forrehabilitation. Insurance reimbursed Opal $1,200 for these expenses. What is the amount of Opal's qualifying medical expense?

A) $3,750.
B) $3,650.
C) $3,000.
D) $4,850.
E) All of the choices are correct.

Question 60

This year Norma paid $1,200 of real estate taxes on her personal residence. Norma's other itemized deductions (state income taxes) only amount to $3,100. Which of the following is a true statement if Norma files single with one personal exemption?

A) Norma should deduct $4,300 even if her standard deduction is $6,350.
B) Norma should deduct $1,200 even if her standard deduction is $6,350.
C) Norma should deduct $3,100 even if her standard deduction is $6,350.
D) Norma should claim the standard deduction.
E) Norma can deduct 4,300 for AGI.

Question 61

Simone donated a landscape painting (tangible capital gain property) to a library, apublic charity. She purchased the painting five years ago for $50,000, and on the date of the gift, it had a fair market value of $200,000. What is her maximum charitable contribution deduction for the year if her AGI is $300,000 (before considering theitemized deduction phase-out)?

A) $100,000.
B) $150,000.
C) $90,000 if the library uses the painting in its charitable purpose.
D) $200,000.
E) None of the choices are correct.

Question 62

Jim was in an auto accident this year. Jim paid $2,450 to repair his personal-use car after the accident and his insurance only reimbursed him $400. Jim bought his car several years ago for $1,500. What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?

A) $2,450.
B) $1,100.
C) $1,500.
D) $2,050.
E) None of the choices are correct.

Question 63

Which of the following is a true statement?

A) Bunching itemized deductions is an illegal method of tax avoidance.
B) Before any applicable phase-out, the deduction for personal and dependency exemptions is $4,050 times the number of exemptions.
C) The standard deduction is increased for taxpayers who are blind or deaf at year-end.
D) A married couple is only entitled to one addition to their standard deduction even if both spouses are both over age 65.
E) All of the choices are true.

Question 64

Fred's employer dispatched him on a business trip from the Dallas headquarters to New York78t)his year. During the trip Fred incurred the following unreimbursed expenses: What is the amount of Fred's deduction before the application of any AGI limitations?

A) $2,870.
B) $2,050.
C) $2,570.
D) $1,300.
E) $0 - the expenses cannot be deducted unless Fred is reimbursed.

Question 65

Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home(fair market value of $500,000), $4,000 of interest on her $30,000 home-equity loan,$1,000 of credit card interest, and $3,000 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,000 of interest income this year and noinvestment expenses. How much of the interest expense may she deduct this year?

A) $22,000.
B) $18,000.
C) $19,000.
D) $23,000.
E) None of the choices are correct.

Question 66

Which of the following is a true statement?

A) Employees can claim business expense deductions as miscellaneous itemized deductions not subject to the 2 percent of AGI limitation.
B) Employees cannot claim business expense deductions.
C) Employees can claim business expense deductions for AGI.
D) Employees can claim business expense deductions as miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
E) None of the choices are true.

Question 67

Which of the following itemized deductions is not subject to the itemized deduction phase-out?

A) state income tax.
B) gambling losses.
C) charitable contributions.
D) mortgage interest.
E) All of the choices are subject to the itemized deduction phase-out.

Question 68

Grace is employed as the manager of a sandwich shop. This year she earned a salary of $45,0810)0 and incurred the following expenses associated with her employment: What amount of miscellaneous itemized deductions can Grace claim on Schedule A if these are her only miscellaneous itemized deductions?

A) $200 if Grace was reimbursed $50 for her cooking class.
B) $550.
C) $150.
D) $1,050.
E) None of the choices are correct.

Question 69

Which of the following is a true statement?

A) Unreimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
B) Fees for tax preparation are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
C) Reimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation unless the employer's reimbursement plan qualifies as an accountable plan.
D) Fees for investment advice are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation.
E) All of the choices are true.

Question 70

Which of the following is a true statement?

A) Interest on home-equity debt up to $100,000 is deductible, even if the loan proceeds are used to buy a new car.
B) Taxpayers may deduct interest on up to $1,000,000 of home-equity debt.
C) Taxpayers may only deduct interest on up to $1,500,000 of acquisition indebtedness.
D) The deduction for investment interest expense is not subject to limitation.
E) None of the choices are true.

Question 71

Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid asalary of $80,000 from his employer and won $2,000 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.

A) decrease in taxable income of $2,200.
B) no change in taxable income.
C) increase in taxable income of $1,640.
D) increase in taxable income of $2,000.
E) decrease in taxable income of $560.

Question 72

Larry recorded the following donations this year:$500 cash to a family in need$2,400 to a church$500 cash to a political campaignTo the Salvation Army household items that originally cost $1,200 but are worth $300.What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

A) $1,000.
B) $2,900.
C) $4,600.
D) $2,700.
E) None of the choices are correct.

Question 73

Which of the following is a miscellaneous itemized deduction that is not subject to the 2 percent of AGI floor?

A) fees for investment advice.
B) employee business expenses.
C) gambling losses to the extent of gambling winnings.
D) tax preparation fees.
E) All of the choices are subject to the 2 percent of AGI floor limit.

Question 74

Andres and Lakeisha are married and file joint. Andres is 72 years old and in good health. Lakeisha is 62 years old and blind. What amount of standard deduction can Andres and Lakeisha claim in 2017?

A) $9,350.
B) $11,850.
C) $12,700.
D) $15,200.
E) None of the choices are correct.

Question 75

When taxpayers donate cash and capital gain property to a public charity, the AGIpercentage limitation is applied in the following order:

A) a 50 percent of AGI limitation is applied to the cash donation and a 20 percent of AGI limitation is applied to the fair market value of the capital gain donation.
B) donations to public charities are not subject to AGI limitations.
C) a 30 percent of AGI limitation is applied to the cash donation and a 20 percent of AGI limitation is applied to the fair market value of the capital gain donation.
D) a 50 percent of AGI limitation is applied to the cash donation and the fair market value of the capital gain donation is subject to the lesser of a 30 percent of AGI limitation or a 50 percent of AGI limitation after subtracting the cash contributions.
E) a 30 percent of AGI limitation is applied to the aggregate donation.

Question 76

Madeoff donated stock (capital gain property) to a public charity. He purchased the stock3 years ago for $100,000, and on the date of the gift, it had a fair market value of$200,000. What is his maximum charitable contribution deduction for the year related to this stock if his AGI is $500,000 (before considering the itemized deduction phase-out)?

A) $200,000.
B) $250,000.
C) $150,000.
D) $100,000.
E) None of the choices are correct.

Question 77

Which of the following is a true statement?

A) A married filing joint taxpayer with AGI of $500,000 would not be able to deduct personal and dependency exemptions.
B) Personal exemptions, but not dependency exemptions, are subject to phase-out.
C) Itemized deductions, but not exemptions, are subject to phase-out.
D) At most, only 80% of exemptions are subject to phase-out.
E) None of the choices are true.

Question 78

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2017?

A) $10,900.
B) $1,550.
C) $10,400.
D) $12,700.
E) $9,350.

Question 79

Carly donated inventory (ordinary income property) to a church. She purchased theinventory last month for $100,000, and on the date of the gift, it had a fair market value of $92,000. What is her maximum charitable contribution deduction for the year related to this inventory if her AGI is $200,000?

A) $60,000.
B) $92,000.
C) $46,000 if the church sells the inventory.
D) $100,000.
E) None of the choices are correct.

Question 80

Which of the following is a true statement?

A) the deduction of capital gain property to private nonoperating foundations is limited to 50 percent of AGI.
B) the deduction of cash contributions to private nonoperating foundations is limited to 30 percent of AGI.
C) the deduction of capital gain property to public charities is limited to 20 percent of AGI.
D) the deduction of cash contributions to public charities is limited to 30 percent of AGI.
E) None of the choices are true.