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21 October, 10:18

Dorchester purchased investment realty in 2001 for $25,000. During the current year, he contributes it to the American Heart Association to use as the site for its new local headquarters. The realty has a value of $52,000 on the contribution date, and Dorchester's AGI is $100,000. Dorchester's maximum current year contribution deduction is:

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  1. 21 October, 11:00
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    The answer is $30,000

    Explanation:

    Solution

    Given that:

    Dorchester in 2001 purchased investment realty for = $25,000.

    The value of the reality = $52,000

    Dorchester's Adjusted gross income = $100,000

    Now,

    We find the maximum present year contribution deduction of Dorchester

    Thus,

    The amount of deduction is shown as follows.

    The reality value = $52,000

    50% of the adjusted gross income is = $100,000 * 30% = $30,000
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