LO.9 Ramon had AGI of $180,000 in 2010. He contributed stock in Charlton, Inc. (a DE C I S ION MAKING publicly traded corporation), to the American Heart Association, a qualified charitable organization. The stock was worth $105,000 on the date it was contributed. Ramon had acquired it as an investment two years ago at a cost of $84,000.

a. Assuming that Ramon carries over any disallowed contribution from 2010 to future years, what is the total amount that he can deduct as a charitable contribution?

b. What is the maximum amount that Ramon can deduct as a charitable contribution in 2010?

c. What factors should Ramon consider in deciding how to treat the contribution for Federal income tax purposes?

d. Assume Ramon dies in December 2010. What advice would you give the executor of his estate with regard to possible elections that can be made relative to the contribution?