1.Earl drafts a will leaving his entire estate to a charitable remainder annuity trust (CRAT). The CRAT provides that Earl's surviving spouse, Helen, will receive an annuity from the trust for life and that when Helen dies, the remaining trust assets will pass to a local chapter of a national charity. Earl dies this year, and assets with a total fair market value of $10 million pass to the CRAT.

a)What is minimum annuity amount must be paid to Helen?

b)What is the minimum value of the remaining trust assets that will pass to a local chapter of a national charity?

2.John and Lisa go to a charity dinner-dance and pay $450 for the tickets. The fair market value of the ticket is $185. All proceeds from the event go directly to this qualified charity. John and Lisa pay for the tickets with the intent to make a charitable contribution. What is the allowable charitable contribution on their federal tax return?