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Today, 00:57

Sacha purchased land in 2010 for $35,000 that she held as a capital asset. This year, she contributed the land to the Boy Scouts of America (a charitable organization) for use as a site for a summer camp. The market value of the land at the date of contribution is $40,000. Sacha's adjusted gross income is $90,000. Assuming no special elections, Sacha's maximum deductible contribution this year is

A) $13,000.

B) $27,000.

C) $35,000.

D) $40,000.

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  1. Today, 02:13
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    maximum deductible contribution this year = $27000

    so correct option is B) $27,000

    Explanation:

    given data

    capital asset = $35000

    market value of the land = $40,000

    gross income = $90,000

    to find out

    maximum deductible contribution this year

    solution

    we get here maximum deductible contribution this year that is express as

    maximum deductible contribution this year = Adjusted gross income * capital gain property ... 1

    Limit on capital gain property is 30%

    maximum deductible contribution this year = $90,000 * 30%

    maximum deductible contribution this year = $27000

    so correct option is B) $27,000
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