33. Nasir\'s records contain the following information 1. Donated stock having a

Question

33. Nasir's records contain the following information 1. Donated stock having a fair market value of $4,000 to a qualified charitable organization. He acquired the stock five months previously at a cost of $3,000. 2 Paid $900 to a church school as a requirement for the enrollment of his son. 3, Paid S350 for annual homeowner's association dues. . prove 500 miles in his personal auto. The travel was directly related to volunteer services he performed for his church. How much can Nasir deduct as a charitable contribution? A) $2,456 B) $3,070 C) $3,356 D) $4,000 34. Chin Grocery, Inc., a C corporation with high taxable income, donates some of its inventory to the Local Food Bank (a charitable organization) which distributes food to the needy. At the time of the contribution, the FMV of the inventory was $15,000, and Chin Grocery's basis was $9,000. Chin Grocery will be allowed a charitable contribution deduction of A) $24,000. B) $12,000. C) $9,000. D) $15,000.

Explanation / Answer

Answer 1 - Deduction available to Nasir is option (d ) $4000.

i.e., the fair value of the property donated to church(charitable organisation by Nasir)

Expense of auto will not be deductible as Nasir didnot go as a representative of church but only as a member(volunteer).

Amount paid to church for son admission and home owner association is also not deductible

Answer 2 - Allowable deduction to chin Grocery is $15000 as the fair value of inventory is allowed as deduction.

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