Question

arry recorded the following donations this year: $640 cash to a family in need $2,540 to a church $640 cash to a political campaign To the Salvation Army household items that originally cost $1,340 but are worth $440. What is Larry's maximum allowable charitable contribution if his AGI is $61,400

Answer 1

Answer:

Larry's maximum allowable charitable contribution is $2,980

Explanation:

The only allowable charitable deductions in this question are

Donation to church

and  

Worth of Salvation Army household items

Cash to family and politician campaign are not allowed

Formula

Maximum Allowable Charitable contribution = Donation to Church + Worth of Salvation army household items

Placing values in the formula

Maximum Allowable Charitable contribution = $2,540 + $440

Maximum Allowable Charitable contribution = $2,980