Problem $17-39($LO$.1,7)$

In $2021,$ Gray Corporation, a calendar year C corporation, has a $$75,000$ charitable contribution carryover from a gift made in $2016.$ Gray is

contemplating a gift of land to a qualified charity in either $2021$ or $2022.$ Gray purchased the land as an investment five years ago for

$$100,000($current fair market value is $$250,000).$ Before considering any charitable deduction, Gray projects taxable income of $$1,000,000$

for $2021$ and $$1,200,000$ for $2022.$

Should Gray make the gift of the land to charity in $2021$ or in $2022?$

If an amount is zero, enter $"0".$

a$.$ If Gray makes the gift of the land to charity in $2021$:

The amount of the contribution deduction in $2021$ will be $

and Gray will have a contribution carryover to $2022$ of

$

$.$ In $2022,$ Gray's contribution deduction will be $

$.$ Gray will have a contribution carryover of

$

to future years.

b$.$ If Gray waits and makes the gift of the land to charity in $2022$:

The amount of the contribution deduction in $2021$ will be $

and Gray would have a contribution carryover to $2022$ of

$$

$.$ In $2022,$ Gray's contribution deduction will be $

$.$ Gray will have a contribution carryover of

to future years.

c$.$ Therefore, Gray should make the gift of the land to charity in $2022$ in order to receive the greatest amount of contribution

deductions and carryover.