Hannah Makes the Following Charitable Donations in the Current Year

question 72

Multiple Choice

Hannah makes the following charitable donations in the current year: $$\begin{array} { l r r } & \text { Basis } & \begin{array} { r } \text { Fair Market } \\\text { Value }\end{array} \\\begin{array} { l } \text { Inventory held for resale in Hannah's business (a } \\\text { sole proprietorship) }\end{array} & \$ 8,000 & \$ 7,200 \\\begin{array} { l } \text { Stock in HBM, Inc., held as an investment } \\\text { (acquired four years ago) }\end{array} & 16,000 & 40,000 \\\begin{array} { l } \text { Baseball card collection held as an } \\\text { investment (acquired six years ago) }\end{array} & 4,000 & 20,000\end{array}$$ The HBM stock and the inventory were given to Hannah's church, and the baseball card collection was given to the United Way.Both donees promptly sold the property for the stated fair market value.Disregarding percentage limitations, Hannah's current charitable contribution deduction is:

• A)$28,000.
• B)$51,200.
• C)$52,000.
• D)$67,200.
• E)None of these.

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Definitions:

Sensory Adaptation

The process by which a sensory system becomes insensitive to a constant stimulus over time.

Sensory Receptors

Highly specialized cells in the sense organs that detect and respond to one type of sensory stimulus—light, sound, or odor, for example—and transduce (convert) the stimuli into neural impulses.

Stimulus

A stimulus is any event or situation that evokes a response from an organism.

Sensation

The process of detecting physical stimuli from the environment and converting them into neural signals that the brain can interpret.