Stock in the ABC Corporation Was Contributed to a Public

question 27

Multiple Choice

Stock in the ABC Corporation was contributed to a public charitable organization. fte basis in the stock was $1,000, but its fair market value was $1,500 at the time of the donation. Indicate the correct income tax treatment as a result of the donation. fte stock was held long term.

• A) Contribution of $1,000 (no gain recognized)
• B) Contribution of $1,500 (no gain recognized)
• C) Contribution of $1,500 (capital gain recognized $300)
• D) Contribution of $1,000 (capital gain recognized $500)
• E) None of the above

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Definitions:

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