Hannah Makes the Following Charitable Donations in the Current Year

question 56

Multiple Choice

Hannah makes the following charitable donations in the current year: $\begin{array}{lrr}&\text { Basis}&\text { Fair Market }\\&&\text { Value }\\\begin{array}{l}\text { Inventory held for resale in Hannah's business (a } \\\text { sole proprietorship) }\end{array} & \$ 8,000 & \$ 7,200 \\\begin{array}{l}\text { Stock in HBM, Inc., held as an investment } \\\text { (acquired four years ago) }\end{array} & 16,000 & 40,000 \\\begin{array}{l}\text { Baseball card collection held as an } \\\text { investment (acquired six years ago) }\end{array} & 4,000 & 20,000 \\\hline\end{array}$ 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:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as the highest need in Maslow's hierarchy of needs.

Maslow Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model, from basic physiological needs to self-actualization.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, pertaining to the realization of an individual's potential, self-fulfillment, and personal growth.

Personal Fulfillment

The achievement of life goals, dreams, or ambitions leading to a sense of satisfaction and contentment.