Christa Has Made a $25,000 Pledge to the American Red

question 72

Multiple Choice

Christa has made a $25,000 pledge to the American Red Cross (a public charity) .Christa expects AGI of $200,000 this year.Which of the following assets should she donate?

• A)$25,000 of cash
• B)stock purchased three years ago for $18,000 with a current FMV of $25,000
• C)stock purchased six months ago for $28,000 with a current FMV of $25,000
• D)Christa should be indifferent among the three choices.

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Definitions:

Constructive Stress

A form of stress that is perceived as manageable and motivating, encouraging personal growth and achievement.

Stimulate Creativity

The act of encouraging new and innovative ideas or ways of thinking, often by creating an environment that fosters curiosity, openness, and risk-taking.

Increase Effort

The act of exerting more energy or working harder to achieve a higher level of performance or productivity.

Personal Factors

Individual attributes such as personality, age, personal beliefs, and life experiences that influence behavior and decisions.