Pamela One donated a total amount of P500,000, 1/2 to the Makati City Hall and 1/2 to a charitable institution Home for the Aged. Upon inquiry, it was verified that the charitable institution's total receipts from donations amounted to P10 million. Its total administrative expenses reached P5 million. How much can Pamela One claim as total allowed deductions from the above donations?
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- A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true? Charity 1 should report a contribution revenue. The donor continues to report an asset even after it is given to Charity 1. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true?a. Charity 1 should report a contribution revenue.b. The donor continues to report an asset even after it is given to Charity 1.c. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue.d. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.Ray Ray made the following contributions in 2023. Charity Athens Academy School United Way American Heart Association First Methodist Church Cash Cash Cash contributions Property donations Property Antique painting Coca-Cola stock Maximum Amount Cost $ 8,050 5,850 15,300 15,250 FMV $ 8,050 5,850 Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. 76,500 22,875
- Which of the following transfers made by your client will be excluded from the client's total gifts in the year made? A) Made a $20,000 contribution to the Shriner's Hospital, which provides free medical care to children B) Paid a family member $15,000 so she could go to school C) Made a $30,000 gift to the donor's spouse D) Paid a hospital $11,000 for medical services rendered to a friendRay Ray made the following contributions this year. Charity Property Athens Academy School United Way American Heart Association First Methodist Church Cost $ 8,050 5,850 Antique painting 15,300 Coca-Cola stock 15,250 Cash contributions Property donations Cash Cash Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. FMV $8,050 5,850 76,500 22,875 Maximum AmountIdentify which of the following statements is true. Select one: a. Charitable contributions of tangible personal property are always equal to its fair market value plus one-half of its basis. b. The Bella Corporation purchases inventory for $5,000. Its FMV on the date it is donated to the Civic Hospital for the care of the needy is $14,000. The maximum charitable contribution deduction available for the donation is $2,000. c. Corporations' charitable deductions are limited to 20% of their adjusted taxable income. d. All of the above are false.
- Mark Moody has adjusted gross income of $52500 this year. During the year, he gave his church $4000 cash and land having a fair market value of $30800 and a basis of $23100. The land was held long-term. A contribution of $9200 in cash was also made to a private charity. How much is the charitable contributions carryover if Mark does not elect to reduce the fair market value by the appreciation in value of the land donated? [For your answer, please use whole number (no need to round) and ignore the dollar sign and the comma.] Answer:1. In year 6, Garland Corp. contributed $40,000 to a qualified Becker charitable organization. Garland's year 6 taxable income before the deduction for charitable contributions was $410,000. Included in that amount is a $20,000 dividends received deduction. Garland also had carryover contributions of $5,000 from the prior year. In year 6, what amount can Garland deduct as charitable contributions? a. $40,000 b. $41,000 c. $43,000 d. $45,000Abu-Abu Cow Co. Received a machine from a donation. The machine was originally acquired by the donor for 1,000,000 and had a carrying amount of 280,000 in the donors books at the time of donation. The machine has a second hand value of 320,000. There are no conditions attached to the donation. Requirements: Provide the entries assuming the donor is a shareholder of Abu-Abu Cow and an unrelated party.
- Ray Ray made the following contributions in 2021. Charity Property Cost FMV $ 5,000 Athens Academy School United Way $ 5,000 4,000 15,000 Cash Cash 4,000 75,000 20,000 American Heart Association Antique painting First Methodist Church Coca-Cola stock 12,000 Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. Maximum Amount Cash contributions Property donations-Calvin’s AGI is $54,000. What is the charitable contribution deduction. What is the carryover?Determine the correct value for each of the following questions: 1. Assume that an individual gives cash to the following parties: $25,000 to a charitable organization, $15,000 to her grandson for his college tuition, $8,000 to her granddaughter to buy a car, and $14,000 to her spouse for a trip to France. What amount of gifts is considered taxable? 2. Assume that an individual has given $25,000 to each of his four grandchildren for each of the past three years and $50,000 to a charitable organization. If he wants to make a single gift to each of his four grandchildren, what would the maximum gift per grandchild be in order to avoid all gift tax? 3. Your client made the following gifts last year: $200,000 to each of her three children, $50,000 to her brother, and $10,000 to each of her eight grandchildren. Prior to that, your client made a single gift of $50,000 to each of her two nieces. If she made a gift of $5,348,000 to her sister in the current year, what amount of gift tax would…