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14 November, 10:15

Michele Barbour is considering an additional charitable contribution of $3,900 to a tax-deductible charity, bringing her total itemized deductions to $24,000. If Michelle is in a 28 percent tax bracket, how much will this $3,900 contribution reduce her taxes?

a. $6,720

b. $1,092

c. $0

d.$3,90

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Answers (1)
  1. 14 November, 11:37
    0
    The correct answer is option (B).

    Explanation:

    According to the scenario, the given data are as follows:

    Amount of Charitable Contribution = $3,900

    Tax Rate = 28%

    So, we can calculate the value of reduction in taxes by using following formula:

    Reduction in Taxes = Amount of Charitable Contribution * Tax Rate

    = $3,900 * 28%

    = $3,900 * 0.28

    = $1,092

    Hence, the value of reduction in taxes is $1,092.
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