Emily, who lives in Indiana, volunteered to travel to Louisiana in March to work on a home-building project for Habitat for Humanity (a qualified charitable organization). She was in Louisiana for three weeks. She normally makes $500 per week as a carpenter’s assistant and plans to deduct $1,500 as a charitable contribution. In addition, she incurred the following costs in connection with the trip: $600 for transportation, $1,200 for lodging, and $400 for meals. What is Emily’s deduction associated with this charitable activity?

a. $600

b. $1,200

c. $1,800

d. $2,200

In 2018, Joanne invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $340,000 in 2018 and $180,000 in 2019. Joanne’s share of the LLC’s losses was $68,000 in 2018 and $36,000 in 2019. How much of these losses can Joanne deduct?

a. $68,000 in 2018; $36,000 in 2019.

b. $68,000 in 2018; $22,000 in 2019.

c. $0 in 2018; $0 in 2019.

d. $68,000 in 2018; $0 in 2019.

Rex and Dena are married and have two children, Michelle (age 7) and Nancy (age 5). During 2018, Rex earned a salary of $24,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is:

a. $5,621

b. $5,426

c. $5,716

d. $0