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please just help with what i got wrong Problem 10-36 (Algorithmic) (LO. 6, 8) In December of each year, Eleanor Young contributes 10% of her

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please just help with what i got wrong

Problem 10-36 (Algorithmic) (LO. 6, 8) In December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution. Fair Market Value $157,000 (1) Cash donation (2) Unimproved land held for six years ($23,550 basis) (3) Blue Corporation stock held for eight months ($23,550 basis) (4) Gold Corporation stock held for two years ($188,400 basis) $157,000 $157,000 $ $157,000 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 complete a letter to Eleanor. Determine the amount of the charitable contribution for each option. Charitable Contribution Cash donation 157,000 Unimproved land held for six years ($23,550 basis) 157,000 Blue Corporation stock held for eight months ($23,550 basis) 23,550 Gold Corporation stock held for two years ($188,400 basis) 157,000 SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 December 5, 2021 , Ms. Eleanor Young 2622 Bayshore Drive Berkeley, CA 94709 Dear Ms. Young: I have evaluated the proposed alternatives for your current year-end contribution to the United Way. I recommend that you sell the Gold Corporation stock and donate the proceeds to the United Way. The four alternatives are discussed below. A $ A donation of cash, the unimproved land, or the Gold stock will result in a $ 157,000 charitable contribution deduction. Donation of the Blue Corporation stock will result in only a $ 23,550 charitable contribution deduction . A direct contribution of the Gold Corporation stock will be a poor decision from a tax perspective in that the decline in value is not deductible and the amount of the charitable contribution would be $ 157,000 . If you sell the Gold stock and give the proceeds to United Way, the donation of the proceeds will result in a s 157,000 charitable contribution deduction. In addition, sale of the stock will result in a s 157,000 X long-term capital loss. If you have capital gains of $ 157,000 X or more this year, you can use the entire loss in computing your current taxable income. If you have no capital gains this year, you can deduct $ 3,000 of the capital loss this year and carry over the remaining $ 157,000 X loss to future years

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