During the Current Year,Ralph Made the Following Contributions to the University

question 92

Multiple Choice

During the current year,Ralph made the following contributions to the University of Oregon (a qualified charitable organization) :
Cash
$63,000
Stock in Raptor,Inc.(a publicly traded corporation)
94,500
Ralph acquired the stock in Raptor,Inc. ,as an investment fourteen months ago at a cost of $42,000.Ralph's AGI for the year is $189,000.What is Ralph's charitable contribution deduction for the current year?

• A)$56,700
• B)$63,000
• C)$94,500
• D)$157,500
• E)None of the above

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Definitions:

Par Value

The face value of a bond or stock, which is the amount paid back to the bondholder at maturity.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon rate) over the bond's lifetime and repays the principal at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all interest payments received and principal repaid.

Total Rate Of Return

The comprehensive measure of investment performance, combining both capital gains and interest or dividends, over a specific period.