LO.2, 7 In 2012, Gray Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2007. Gray is contemplating a gift of land to a qualified charity in either 2012 or 2013. 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 million for 2012 and

$1.2 million for 2013. Should Gray make the gift of the land to charity in 2012 or in 2013? Provide support for your answer.