Zeke Made the Following Donations to Qualified Charitable Organizations During

question 101

Multiple Choice

Zeke made the following donations to qualified charitable organizations during the year:
$\begin{array}{lrr}& \text {Basis}&\text {Fair Market Value}\\ \text { Used clothing (all acquired before 2012) of taxpayer }\\\text { and his family } & \$ 1,350 & \$ 375 \\\text { Stock in ABC, Inc., held as an investment for } & & \\\text { fifteen months } & 12,000 & 10,875 \\\text { Stock in MNO, Inc., held as an investment for } & 15,000 & 18,000 \\\text { eleven months } & 15,000 & 30,000\\\text { Real estate held as an mvestment for two years }&15,000&30,000\end{array}$


The used clothing was donated to the Salvation Army; the other items of property were donated to Eastern State University. Both are qualified charitable organizations. Disregarding percentage limitations, Zeke's charitable contribution deduction for the year is:

• A) $43,350.
• B) $56,250.
• C) $59,250.
• D) $60,375.
• E) None of the above.

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Definitions:

Inventory

The total amount of goods and materials held by a company in stock, ready for sale or production.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the upcoming fiscal year.

Days' Sales In Inventory

An indicator that reflects the average number of days a company requires to convert its inventory into sales.

Inventory Ratio

A financial metric that indicates how many times a company's inventory is sold and then replaced over a specific period.