menu
bartleby
search
close search
Hit Return to see all results

Helga had AGI of $135,000 in 2018. She donated corporate stock with a basis of $28,000 to a qualified charitable organization on April 3, 2018.a.  What is the amount of Helga's deduction assuming that she purchased the stock on June 15, 2017, and the stock had a fair market value of $26,000 when she made the donation?Helga's deduction is $.b.  Assuming that she purchased the stock on January 15, 2017, and the stock had a fair market value of $33,000 when she made the donation, Helga's deduction is $.c.  Assuming that she purchased the stock on January 15, 2018, and the stock had a fair market value of $29,000 when she made the donation to the charity, Helga's deduction is $

Question

Helga had AGI of $135,000 in 2018. She donated corporate stock with a basis of $28,000 to a qualified charitable organization on April 3, 2018.

a.  What is the amount of Helga's deduction assuming that she purchased the stock on June 15, 2017, and the stock had a fair market value of $26,000 when she made the donation?
Helga's deduction is $.

b.  Assuming that she purchased the stock on January 15, 2017, and the stock had a fair market value of $33,000 when she made the donation, Helga's deduction is $.

c.  Assuming that she purchased the stock on January 15, 2018, and the stock had a fair market value of $29,000 when she made the donation to the charity, Helga's deduction is $

check_circleAnswer
Step 1

Part (a) Basis = $ 28,000; Fair Value = $ 26,000

Period of holding: From June 15, 2017 till April 3, 2018. It's not even a year. Hence, it doesn't qualify for long term holding. It's a short term holding. 

Hence, short term capital gain deduction = minimum (Basis, Fair Value) = minimum (28000, 26000) = $ 26,000

Step 2

Part (b)

Period of holding: From January 15, 2017 to April 3, 2018; it's mor ethan a year, hence it's a lo...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Finance

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: A project will produce cash inflows of $3,200 a year for 4 years with a final cash inflow of $5,700 ...

A: Calculation of NPV: Excel spread sheet:

question_answer

Q: Case Study #3: Chapter 6 Business Analysis -  A business can be valued by capitalizing its earnings ...

A: You have asked a question with five sub parts. I will address the first three sub parts. Please post...

question_answer

Q: A security that is selling for $3,000 and promises to pay annual interest or $250 forever would have...

A: Calculation of annual yield:Answer:The annual yield of security is 8.333%.

question_answer

Q: Rossdale, Inc., had additions to retained earnings for the year just ended of $575,000. The firm pai...

A: 1.Calculate the earnings per share as follows:

question_answer

Q: Find the following values for a lump sum assuming annual compounding: The future value of $500 inve...

A: Before we get into the solution, let's understand two reciprocal concepts:If present value (PV) is k...

question_answer

Q: sugey communication has a balance at december 31 cash    $37,000 office equipment  $51,250 building ...

A: Balance sheet It is a part of the financial statements which shows any company’s standings with resp...

question_answer

Q: You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted ...

A: APR refers to annual percentage rate. An APR is the annual rate that is charged for borrowing or can...

question_answer

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Unit sales per month can be compared to production per month and the difference will give us the cha...

question_answer

Q: 1. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $3...

A: 1)Calculate the present and future value of an investment: Excel workings:

Sorry about that. What wasn’t helpful?