1. Charles is a single person, age 35, with no dependents. In 2021, Charles has gross income of $75,000 from his sole proprietorship. Charles also incurs $80,000 of deductible business expenses in connection with his proprietorship. He has interest and dividend income of $22,000. Charles has $7,000 of itemized deductions. Charles's taxable income is

		$4,450.
		$17,000.
		$10,000.
		none of the above.

2.Carol contributes a painting to a local museum for display. Her AGI is $60,000. Carol paid $22,000 for the painting in 2006, but its market value at the date of the contribution is $25,000. With no special elections, Carol's deductible contribution this year is

		$7,000.
		$22,000.
		$18,000.
		$25,000.

3.

1. Clayton contributes land to the American Red Cross for use as a future site for a new building. His AGI is $50,000. Clayton paid $20,000 for the land eight months ago but its market value at the date of contribution is $25,000. With no special elections, Clayton's deductible contribution this year is

   		$18,000.
   		$20,000.
   		$7,000.
   		$25,000.