Choice "D" is correct. The $4,000 cash contribution to the church is deductible. Relative to the purchase of the art object at the church bazaar, only the excess paid over fair market value ($1,200 - $800$400) is deductible. The used clothing donation to the Salvation Army is deductible at its fair market value of $600. The total deduction is $5,000 ($4,000 + $400 + $600). Note that the total contributions deduction is below the 50% of adjusted gross income ceiling (50% x $60,000$30,000), since $5,000 is less than $30,000.
Choice "b" is incorrect. The art object deduction is not its fair market value of $800, but the $400 excess paid over its fair market value.
Choice "a" is incorrect. The used clothing donated to the Salvation Army is deductible at its $600 fair market value. In addition, the art object deduction is only the $400 excess paid over fair market value, not the $1,200 paid.
Choice "c" is incorrect. The used clothing donated to the Salvation Army is deductible at its $600 fair market value.