During the Year, Arlene Donates Stock She Had Purchased in 2005

question 22

Essay

During the year, Arlene donates stock she had purchased in 2005 for $30,000 to a qualified public charitable organization. The fair market value of the stock at the time of the donation is $40,000. Her adjusted gross income for the year is $80,000. If the stock donation is her only charitable contribution, what is Arlene's charitable contribution deduction? What should she consider in determining the amount of the deduction?

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Definitions:

Uncertain Situations

A condition where the outcomes or consequences of an event are not known or predictable.

Diversification

A strategy for managing risk that involves diversifying the portfolio by incorporating a broad array of investments.

Uncertain Situations

Scenarios in which outcomes or conditions are not known, predictable, or completely measurable, often affecting decision making.

Information

Pertains to data, knowledge, or facts that are acquired through experience, observation, or instruction, which can influence economic decisions.