Zeke Made the Following Donations to Qualified Charitable Organizations During

question 81

Multiple Choice

Zeke made the following donations to qualified charitable organizations during the year: $\begin{array}{lcc}&\text { Basis}&\text { Fair Market }\\&&\text { Value }\\\begin{array}{l}\text { Used clothing of taxpayer and his family (all acquired } \\\text { more than a year ago) }\end{array} & \$ 1,350 & \$ 375 \\\begin{array}{l}\text { Stock in ABC, Inc., held as an investment for 15 } \\\text { months }\end{array} & 12,000 & 10,875 \\\begin{array}{l}\text { Stock in MNO, Inc., held as an investment for 11 } \\\text { months }\end{array} & 15,000 & 18,000 \\\text { Real estate held as an investment for two years } & 15,000 & 30,000\end{array}$ The used clothing was donated to the Salvation Army? the other items of property were donated to Eastern State University. Both are qualified charitable organizations. Disregarding percentage limitations, Zeke's charitable contribution deduction for the year is:

• A) $43,350.
• B) $56,250.
• C) $59,250.
• D) $60,375.
• E) None of these.

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Definitions:

Totality Quality Management

A management approach centered on quality, based on the participation of all members of an organization and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society.

Price Discriminating

A pricing strategy where a company charges different prices for the same product or service to different customers, based on their willingness to pay.

Willingness to Pay

The maximum amount an individual is prepared to spend to purchase a good or service or to avoid something undesirable.

Elastic

Describes a situation where the quantity demanded or supplied responds significantly to changes in price.