Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is Willy and Nilly's list of 2019 charitable contributions, exactly as they handed it to you in your capacity as their MFJ return preparer:

Here is Willy and Nilly's list of 2019 charitable contributions, exactly as they handed it to you in your capacity as their MFJ return preparer: 

Our 2019 Charitable Contributions 

• $40,000 - FMV of ABC Corp. stock donated to American Red Cross 

• $6,000 – “Blue Book" retail value of 2010 pickup truck donated to Big Brothers Big Sisters of Collin County (BBBS) 

• $10,000 - Used clothing, furniture, household goods donated to Goodwill Industries of North Texas 

Due diligence notes: 

1. Each organization named by Willy and Nilly is eligible to receive tax- deductible donations. 

2. The ABC Corp. stock was donated on Sept. 1, 2019; it was inherited from Rich Uncle (died on May 30, 2019), who had bought it for $30,000 on May 1, 2019; FMV of the stock on May 30th was $35,000. 

3. The pickup truck was donated on June 30, 2019; on July 15, 2019, it was sold at auction by BBBS's auctioneer-agent for $3,500; BBBS netted $3,000 after the auctioneer's fee of $500. 

4. The used clothing and etc. was valued by Willy and Nilly at 50% of original cost ("Good enough for government work!" says Nilly); the approximate "thrift shop value” was $1,500. 


What total noncash charitable contributions amount will you enter into your 2019 return preparation software for Willy and Nilly?

Step by Step Solution

3.42 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

Computation g NonCash charitable Contaibution for 2019 Particulars Amount Worki... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Information Systems Supporting and Transforming Business

Authors: Kelly Rainer, Casey Cegielski

4th edition

978-1118129401, 1118129407, 1118063341, 978-1118214251, 1118214250, 978-1118063347

More Books

Students also viewed these Accounting questions

Question

Bonus shares can be issued out of revenue reserves. True/False?

Answered: 1 week ago

Question

Describe the most common types of wireless devices.

Answered: 1 week ago

Question

Debate the lawsuit from the point of view of Marin County?

Answered: 1 week ago