Question: Please use this information for the next THREE questions! This question is worth 9 points, as allocated to parts a, b, and c below. Don,
Please use this information for the next THREE questions!
This question is worth 9 points, as allocated to parts a, b, and c below.
Don, Peggy, and Roger operate an advertising agency located on Madison Avenue in New York City as a partnership. Don owns 60% of the business, Peggy owns 30%, and Roger owns 10%. For the current year, the advertising agency reports the following from its operations:
| Sales Revenues | $972,000 |
| Trade and business expenses (salaries, utilities, rent, etc.) | $457,000 |
| Charitable Contributions | $30,000 |
| Short Term Capital Losses | $46,000 |
| Long Term Capital Gains | $15,000 |
Assume Peggy is single and has no other taxable income other than what is reported on her schedule K-1 from the partnership. However, in addition to what is reported to her from the partnership, she also makes $3,000 in charitable contributions. Indicate whether or not she will itemize her deductions, and what the itemized deductions would be (even if she opts to use the standard deduction).
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