Discussion Question 10-13 (LO. 6) Mike purchased four $100 tickets to a fund-rai

Question

Discussion Question 10-13 (LO. 6)

Mike purchased four $100 tickets to a fund-raising dinner and dance sponsored by the public library, a qualified charitable organization. In its advertising for the event, the library indicated that the cost of the tickets would be deductible for Federal income tax purposes.

Indicate whether the following statements are "True" or "False" regarding the contribution.

a. Because it is a public library, Mike will receive a charitable contribution deduction for the total cost of the ticket. b. Mike will be required to reduce his deduction by the value of the dinner and the dance. c. Mike not be allowed to deduct any portion of the cost of ticket since his intent was to attend the dinner and dance and not make a contribution.

Explanation / Answer

A. Because it is a public library, Mike will receive a charitable contribution deduction for the total cost of the ticket.- TRUE

B. Mike will be required to reduce his deduction by the value of the dinner and the dance.-FALSE

C. Mike not be allowed to deduct any portion of the cost of ticket since his intent was to attend the dinner and dance and not make a contribution.-FALSE

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