Eric,age 80,has Accumulated About $4 Million in Net Assets

question 82

Multiple Choice

Eric,age 80,has accumulated about $4 million in net assets.Among his assets are the following marketable securities held as investments.

Eric would like to donate (either by lifetime or testamentary transfer) $250,000 in value to his church.In addition,to consummate a land deal,he needs $250,000 in cash.Looking solely to tax considerations and using only the assets described above,Eric's best choice is to:

• A)Donate by gift to the church the Crane stock and sell the Hawk stock now.
• B)Donate by death to the church the Hawk stock and sell the Cardinal stock now.
• C)Donate by gift to the church the Hawk stock and sell the Crane stock now.
• D)Donate by gift to the church the Cardinal stock and sell the Hawk stock now.
• E)None of the above is an attractive technique.

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Definitions:

McClelland

A psychologist known for his work on motivation, particularly the Theory of Needs focusing on achievement, power, and affiliation.

Achievement Motivation

The inner drive or need to attain a goal or reach a particular standard of success.

Expectancy Model

The expectancy model, often applied in motivational theory, posits that an individual's motivation is determined by their expected outcomes of specific behaviors or efforts.

Assumptions

Beliefs or ideas taken for granted without verification, often underlying decision-making processes and perspectives.