Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121 Dan plans for the corporation to make a charitable contribution to the University of Washington, a qualified public charity He will have the corporation donate Jaybird Corporation stock, hel...

Hoffman Maloney Raabe Young CPAs 5191 Natorp Boulevard Mason OH 45040 December 17 2016 Mr Dan Simms ...

Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121.

Question:

Dan Simms is the president and sole shareholder of Simms 1121 Madison Street, Seattle, WA 98121. Dan plans for the to make a charitable contribution to the University of Washington, a qualified public charity. He will have the donate Jaybird stock, held for five years, with a basis of $11,000 and a fair market value of $25,000. Dan projects a $310,000 net profit for Simms in 2016 and a $100,000 net profit in 2017. Dan calls you on December 12, 2016, and asks whether he should make the contribution in 2016 or 2017. Write a letter advising Dan about the timing of the contribution?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...