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

question 568

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

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Definitions:

Private Placement

Private Placement is a method of raising capital through the sale of securities to a relatively small number of select investors rather than through a public offering.

Management Team

The group of individuals at the top level of an organization who are responsible for executing the strategic plans and policies to achieve its goals and objectives.

ICE Futures Canada

A marketplace where futures contracts for commodities such as canola are traded.

Derivatives Products

Financial instruments whose value is derived from the value of one or more underlying assets or indices.