The local animal humane society


Stephanie is the two-year old daughter of Jason and Kelly Larkspur. Stephanie starred in several television commercials this year, for which Jason and Kelly received $50,000. In order to be in the commercials, the Larkspurs spent $9,000 on special costumes for Stephanie to wear in the commercials. They also donated $10,000 in Stephanie's name to the local Animal Humane Society, a qualified charitable organization.

a. Who reports the $50,000 in gross income? Jason and Kelly or Stephanie? Cite your answer.

b. Who reports a business expense deduction for the $9,000 paid for the costumes? Jason and Kelly or Stephanie? Cite your answer.

c. Who reports a charitable contribution deduction for the donation made to the Animal Humane Society? Jason and Kelly or Stephanie? Cite your answer.

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Accounting Basics: The local animal humane society
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