Ronald Donates Publicly Traded Microsystems Stock with a Basis of $2,000

question 34

Essay

Ronald donates publicly traded Microsystems stock with a basis of $2,000 and a fair market value of $20,000 to the local library, which is considered a public charity. Ronald has $30,000 of adjusted gross income, and he purchased the stock 15 years ago. How is this contribution treated on Ronald's tax return?

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Definitions:

Consumer Tastes

Refers to the preferences or dislikes that individuals have regarding different goods and services.

Demand Increase

A situation where the quantity of a good or service that consumers are willing and able to purchase at a given price level rises.

Oranges

A citrus fruit that is a primary source of vitamin C and used in culinary dishes and beverages.

Clementines

A type of small, sweet citrus fruit that is seedless and easy to peel.