Suppose you can claim all your charitable donations as a deduction on your federal income tax (if you decide to itemize deductions) and the top marginal tax rate is 37 percent. What is the cost of a $2,000 charitable contribution for someone who itemizes and who is in the top tax bracket? If there is a cap on itemized deductions of $25,000 and Maya is in the top tax bracket and has $25,000 of deductions for property taxes and interest on her mortgage. What is the cost of a $2,000 charitable contribution for Maya?
Please round your final answer to two decimal places.
◦ $1,260.00, $2,000
◦ $740, $740
◦ $740, $2,000
◦ $1,260.00, $1,260.00