LO.6, 9 In December each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 28% marginal tax bracket, is considering the following alternatives for satisfying the contribution.

Fair Market Value

(1) Cash Donation $23,000

(2) Unimproved land held for six years ($3,000 basis) 23,000

(3) Blue Corporation stock held for eight months ($3000 basis) 23,000

(4) Gold Corporation stock held for two years ($28,000 basis) 23,000

Eleanor has asked you to help her decide which of the potential contributions listed above will be most advantageous tax wise. Evaluate the four alternatives and write a letter to Eleanor to communicate your advice to her. Her address is 2622 Bayshore Dive, Berkeley, CA 94709.