During the year, Ricardo made the following contributions to a qualified public charity:

Cash	$220,000
Stock in Seagull, Inc. (a publicly traded corporation)	$280,000

Ricardo acquired the stock in Seagull, Inc., as an investment five years ago at a cost of $120,000. Ricardo's AGI is $840,000.

a. Before any limitations, what is Ricardo's potential charitable contribution deduction for the stock and cash? $ 500,000

The total allowable charitable contributions for Ricardo is:

Cash	$ 220,000
Stock in Seagull, Inc.	$ 200,000
Total	$ 420,000

b. The unused portion of the Seagull stock contribution is $80,000. The carryover period for this unused portion is 5 years.

c. Ricardo expects his taxable income to vacillate over the next several years, and his ability to claim the remaining charitable contribution deduction in those years is uncertain.

Assume that Ricardo is in the 39.6%, 25%, and 15% tax brackets in the year of contribution, the third year following the contribution, and the fifth year following the contribution, respectively.

Assume a 6% discount rate. The present value factors, at a 6% discount rate, are as follows: Year 1: 1.000, Year 3: 0.8396, Year 5: 0.7473.

If required, round your final answers to the nearest dollar.

Compute the present value of the tax savings from the charitable contribution if $420,000 is deducted in the year of the contribution and $80,000 is deducted three years following the contribution (when Ricardo expects to be in the 25% rate bracket). $.

Compute the present value of the tax savings from the charitable contribution if $420,000 is deducted in the year of the contribution and $80,000 is deducted five years following the contribution (when Ricardo expects to be in the 15% tax bracket).