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06 Mar 2024, 02:30
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
66% (02:03) correct
34%
(02:27)
wrong
based on 552
sessions
History
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Not Attempted Yet
Recently proposed legislation would change the way that the federal government treats the donation of used cars to charity. Under current rules, people can donate used cars and take a deduction equal to the full value of the car on their taxes. Under new rules, only a small fraction of the value of the car could be deducted. Since many charities rely on the income produced from used car donations, the new rules will severely impair the financial capabilities of these charities, and possibly cause some to shut down.
The argument above assumes which of the following?
A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have.
B. Money generated from the sale of donated used cars provides the only source of funding for many charities.
C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits.
D. People that donate cars to charities do not donate cash or other goods to charity.
E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction.
The argument above assumes which of the following?
A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have.
B. Money generated from the sale of donated used cars provides the only source of funding for many charities.
C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits.
D. People that donate cars to charities do not donate cash or other goods to charity.
E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction.
DhruvBadaya
Joined: 27 Feb 2024
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06 Mar 2024, 03:41
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A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have. I cannot oppose this. Let's hold onto this for a while.
B. Money generated from the sale of donated used cars provides the only source of funding for many charities. Alright. That might or might not be the case. It might be that cars is a part of funding. But this does not imply that just because it is a part of several sources of income, it cannot hamper the financial capabilities of a charity. This statement does not lead to any conclusions.
C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits. This is irrelevant.
D. People that donate cars to charities do not donate cash or other goods to charity. Again, same thing as second. Even if they did, so what? Stopping of one source of income can still severely hamper financial capabilities of a charity.
E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction. This is irrelevant.
A is the only option I cannot oppose and hence that must be the answer.
B. Money generated from the sale of donated used cars provides the only source of funding for many charities. Alright. That might or might not be the case. It might be that cars is a part of funding. But this does not imply that just because it is a part of several sources of income, it cannot hamper the financial capabilities of a charity. This statement does not lead to any conclusions.
C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits. This is irrelevant.
D. People that donate cars to charities do not donate cash or other goods to charity. Again, same thing as second. Even if they did, so what? Stopping of one source of income can still severely hamper financial capabilities of a charity.
E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction. This is irrelevant.
A is the only option I cannot oppose and hence that must be the answer.
06 Mar 2024, 08:54
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Bunuel
+1 for (A)
If we negate the statement " Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have. " will not lead to the conclusion " the new rules will severely impair the financial capabilities of these charities, and possibly cause some to shut down." as things will continue as usual.
Hence Correct Answer must be (A)
