Question
Fred decides to gift 25 shares of ABC to his favorite charity. He had purchased the shares in 2015 at $20/share. The current market value
Fred decides to gift 25 shares of ABC to his favorite charity. He had purchased the shares in 2015 at $20/share. The current market value of XYZ shares is $35. His average tax rate is 20% and his marginal tax rate is 32%. Select each of the correct answers.
| A. | The tax savings for this gift is $280 | |
| B. | The value of his gift is $875 | |
| C. | The capital gains tax on this gift will be $56.25 | |
| D. | The tax savings for this gift is $175 | |
| E. | The value of his gift is $500 |
there are multiple answers to this question. which ones are they?
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Finance Capital Markets Financial Management And Investment Management
Authors: Frank J. Fabozzi, Pamela Peterson Drake
1st Edition
0470407352, 978-0470407356
