Final Exam

Arthur transfers property valued at $250,000 to a charitable organization in return for a single life annuity based on his life value at $130,000. Arthurs adjusted basis in the transferred property was $95,000. Arthur died two years after the transaction and at the time of his death, the property had a fair market value of $325,000. At the time of the initial transfer, what was Arthurs charitable income tax deduction (ignoring any AGI limitations)?

Select one: a. $75,000. b. $120,000. c. $155,000. d. $250,000.