n December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution. Fair Market Value (1) Cash donation $23,000 (2) Unimproved land held for six years ($3,000 basis) $23,000 (3) Blue Corporation stock held for eight months ($3,000 basis) $23,000 (4) Gold Corporation stock held for two years ($28,000 basis) $23,000 Eleanor has asked you to help her decide which of the potential contributions listed above will be most advantageous tax-wise. Evaluate the four alternatives and complete a letter to Eleanor. Determine the amount of the charitable contribution for each option. Charitable Contribution Cash donation $fill in the blank 1 Unimproved land held for six years ($3,000 basis) $fill in the blank 2 Blue Corporation stock held for eight months ($3,000 basis) $fill in the blank 3 Gold Corporation stock held for two years ($28,000 basis) $fill in the blank 4
n December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution. Fair Market Value (1) Cash donation $23,000 (2) Unimproved land held for six years ($3,000 basis) $23,000 (3) Blue Corporation stock held for eight months ($3,000 basis) $23,000 (4) Gold Corporation stock held for two years ($28,000 basis) $23,000 Eleanor has asked you to help her decide which of the potential contributions listed above will be most advantageous tax-wise. Evaluate the four alternatives and complete a letter to Eleanor. Determine the amount of the charitable contribution for each option. Charitable Contribution Cash donation $fill in the blank 1 Unimproved land held for six years ($3,000 basis) $fill in the blank 2 Blue Corporation stock held for eight months ($3,000 basis) $fill in the blank 3 Gold Corporation stock held for two years ($28,000 basis) $fill in the blank 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Problem 10-36 (LO. 6, 8)
In December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution.
|
Eleanor has asked you to help her decide which of the potential contributions listed above will be most advantageous tax-wise. Evaluate the four alternatives and complete a letter to Eleanor.
Determine the amount of the charitable contribution for each option.
|
| Maloney, Young, Nellen, & Persellin, CPA 5191 Natorp Boulevard Mason, OH 45040 |
| December 5, 2020 |
| Ms. Eleanor Young 2622 Bayshore Drive Berkeley, CA 94709 |
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