During the current year,Jane spends approximately 90 hours of her time in developing computer software for a church.As a programmer and data analyst,Jane normally bills her clients at $130 per hour for her time.Jane also drives her car a total of 800 miles in performing her voluntary work.Jane's deductible contribution is
A)$0.
B)$112.
C)$11,700.
D)$11,812.

Question

Quizplus · Accepted Answer

Jane's deductible contribution includes the value of her time and any out-of-pocket expenses she incurred while performing the voluntary work for the church.

For her time, she would normally bill her clients $130 per hour, and therefore her time contribution would be valued at 90 hours x $130/hour = $11,700.

For her car expenses, Jane can claim a deduction of 14 cents per mile driven for charitable purposes. Thus, her car expenses contribution would be valued at 800 miles x $0.14/mile = $112.

Therefore, her total deductible contribution would be $11,700 + $112 = $11,812, which is closest to option B.

During the Current Year,Jane Spends Approximately 90 Hours of Her