Hannah Makes the Following Charitable Donations in the Current Year

question 79

Multiple Choice

Hannah makes the following charitable donations in the current year:
Basis
Fair Market Value
Inventory held for resale in Hannah's business (a sole proprietorship)
$8,000
$ 7,200
Stock in HBM,Inc. ,held as an investment (acquired four years ago)
16,000
40,000
Baseball card collection held as an investment (acquired six years ago)
4,000
20,000
​
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 the above.

---

Definitions:

Marketable Securities

Financial instruments that can be quickly converted into cash at fair market value.

Financial Policy

A set of guidelines or principles set by a company that govern its decisions regarding financial management, investments, and financing strategies.

Accounts Receivable Financing

A type of financing arrangement wherein a business uses its outstanding invoices as collateral to receive immediate funds from a lender.

Secured Short-Term Loan

A loan that is backed by collateral and has a maturity period of one year or less.