Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the first one This is how I got my numbers Ramon had AGI of $205,000 in 2017. He is considering making

I need help with the first one

image text in transcribed

This is how I got my numbers

image text in transcribed

Ramon had AGI of $205,000 in 2017. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Ramon has decided to make his $123,000 gift to the American Heart Association in the form of cash. However, he is considering delaying his gift until next year when his AGI will increase to $300,000 and he will be in the 33% income tax bracket, an increase from his current-year income tax bracket of 28%. Assume a 6% discount rate. The present value factors, at a 6% discount rate, are as follows: PV Factor at 6% 0.9434 0.8396 0.7473 : Year : If required, round your final answers to the nearest dollar Ramon asks you to determine the tax savings from the tax deduction in present value terms if he were to make the gift this year, rather than delaying the gift until next year. For purposes of this analysis, ignore the potential impact of the overall limitation on certain itemized deductions. Total present value of tax savings from the tax deduction if made this year:$ 28,700X Total present value of tax savings from the tax deduction if made next year: $ 38,293

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Management Accounting Change Approaches And Perspectives

Authors: Chandana Alawattage, Danture Wickramasinghe

1st Edition

0415393329, 978-0415393324

More Books

Students also viewed these Accounting questions

Question

Name three healthy eating habits and three healthy exercise habits.

Answered: 1 week ago

Question

What are our strategic aims?pg 87

Answered: 1 week ago