Question

Pedro's child attends a school operated by the church the family attends. Pedro made a donation of $1,000 to the church in lieu of the normal registration fee of $200. In addition, Pedro paid the regular tuition of $6,000 to the school. Based on this information, what is Pedro's charitable contribution?a. $0b. $800c. $1,000d. $6,800e. $7,000

Answer 1

Answer:

B) $800

Explanation:

Pedro's $1,000 donation must be reduced by the normal $200 registration fee of the school (= $1,000 - $800). The other $6,000 he paid in tuition are considered personal expenses and cannot be considered a charitable contribution.

Charitable contributions are money you donate, not money you pay for services, e.g. educational services.