Clarice, Age 90, Has Accumulated $1

question 1

Multiple Choice

Clarice, age 90, has accumulated $1.5 million in net assets.Included in this are three blocks of stock: Stock A has a basis of $300,000 and a fair market value of $400,000; Stock B has a basis of $400,000 and a fair market value of $200,000; Stock C has a basis of $100,000 and a fair market value of 400,000.Clarice needs $200,000 now to pay off the mortgage on her daughter's home and she wants to make a $400,000 donation to her Church either as a lifetime or testamentary transfer.Which assets should she sell to accomplish this with the least current tax cost?

• A)Sell Stocks A and C now.
• B)Sell Stock B and leave stock C to the Church upon her death.
• C)Sell Stock A and leave stock C to the Church upon her death.
• D)Sell Stock C and leave Stock B to the Church upon her death.

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Definitions:

Emerging Adulthood

A phase of life between adolescence and full-fledged adulthood, typically ranging from ages 18 to 25, characterized by exploration and instability.

Western

Pertaining to or characteristic of the cultures, civilizations, or societies traditionally located in the Western Hemisphere, primarily focusing on Europe and North America, and often associated with specific values, beliefs, and practices.

Research

Systematic investigation aimed at discovering, interpreting, and revising facts.

Traditional Markers

Established indicators or milestones that are widely recognized in society to denote significant life events or transitions, such as graduation or marriage.