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.

---

Definitions:

National Debt

The total fiscal debt amassed by a country's government, sourced through a variety of methods.

Social Security Benefits

Government-provided financial assistance to eligible individuals, including retirees, disabled persons, and survivors.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors.

Average Tax Rate

The average tax rate is the proportion of total income paid in taxes, calculated by dividing the total tax amount by the taxpayer’s total income.