During the current taxation year, Mike made the following donations to registered charities:

•Cash of $2,500 •Personal computer equipment: FMV at time of donation = $3,000; original cost to Mike = $5,500 •Publicly traded shares: FMV at time of donation = $7,600; original cost to Mike = $4,400 •Artwork for charity gala: FMV at time of donation = $1,750; original cost to Mike = $1,350 •Two hours of Mike's advisory services provided to the Board of Directors of ABC registered charity: FMV = $700

What is the impact of the above transactions on Mike's federal personal income taxes in the current year assuming that Mike taxable income is under $200,000?

Answer rating: 100% (QA)

Step 1 Here explain the details of the taxable deduction which are incurred in the form of donation ... View the full answer