FOR ACCT 3350- Fundamentals of Federal Taxation

(5) Here is Willy and Nilly's list of 2019 charitable contributions, exactly as they handed it to you in your capacity as their MFJ return preparer: Our 2019 Charitable Contributions $40,000 - FMV of ABC Corp. stock donated to American Red Cross $6,000 Blue Book" retail value of 2010 pickup truck donated to Big Brothers Big Sisters of Collin County (BBBS) $10,000 - Used clothing, furniture, household goods donated to Goodwill Industries of North Texas Due diligence notes: 1. Each organization named by Willy and Nilly is eligible to receive tax- deductible donations. 2. The ABC Corp. stock was donated on Sept. 1, 2019; it was inherited from Rich Uncle (died on May 30, 2019), who had bought it for $30,000 on May 1, 2019; FMV of the stock on May 30th was $35,000. 3. The pickup truck was donated on June 30, 2019; on July 15, 2019, it was sold at auction by BBBS's auctioneer-agent for $3,500; BBBS netted $3,000 after the auctioneer's fee of $500. 4. The used clothing and etc. was valued by Willy and Nilly at 50% of original cost ("Good enough for government work!" says Nilly); the approximate "thrift shop value was $1,500. 500 What total noncash charitable contributions amount will you enter into your 2019 return preparation software for Willy and Nilly? (Ignore any statutory limitations on annual amounts.)