Jill Is Considering Making a Donation to Her Church

question 1723

Essay

Jill is considering making a donation to her church. She wants to give $50,000 for the new church building. She has some stock with a FMV of $50,000 and an adjusted basis of $10,000 that she has held for 3 years. She is planning to sell the stock and donate the $50,000 proceeds to the church. What should she consider before taking that action?

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Definitions:

Adjusted Trial Balance

The trial balance prepared after all the adjusting entries have been posted.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Accrued Taxes Payable

Taxes that have been incurred but not yet paid, recorded as a liability on the company's balance sheet.

Current Liability

A financial obligation or debt that is due within one year or within the normal operating cycle of a business.