Required information [The following information applies to the questions displayed below.] Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV $ 6,400 $36,000 3,420 5,700 540 Hobbs Medical Center IBM stock Antique painting Food and clothes State Museum A needy family United Way 320 Cash 22,000 22,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) c. Calvin's AGI is $84,000. X Answer is complete but not entirely correct. Charitable contribution deduction $ 42,000 O Carryover $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique
painting and IBM stock. He has owned the IBM stock and the painting since 2005.
Donee
Item
Cost
FMV
$ 6,400 $36,000
3,420
5,700
Hobbs Medical Center
IBM stock
Antique painting
Food and clothes
State Museum
A needy family
United Way
540
320
Cash
22,000
22,000
Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no
answer blank. Enter zero if applicable.)
c. Calvin's AGI is $84,000.
Answer is complete but not entirely correct.
Charitable contribution deduction
2$
42,000
Carryover
$
%24
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV $ 6,400 $36,000 3,420 5,700 Hobbs Medical Center IBM stock Antique painting Food and clothes State Museum A needy family United Way 540 320 Cash 22,000 22,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) c. Calvin's AGI is $84,000. Answer is complete but not entirely correct. Charitable contribution deduction 2$ 42,000 Carryover $ %24
Expert Solution
Step 1

Charitable contributions to qualified charitable organizations are deductible by individual taxpayers. The charitable contribution deduction is limited to 50% of a taxpayer's Adjusted Gross Income (AGI) for that tax year. Charitable deductions that cannot be used in the current year carry forward to be used in future years. Contributions of property are also deductible at its fair market value (FMV) at time of donation baring specific exceptions. Contributions made directly to individuals are not deductible.

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