Joseph Thompson is president and sole shareholder of Jay Corporation. In December 2017, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University of Maine, a qualified public charity. Joe is considering the following alternatives as charitable contributions in December 2017:
___________________________________________________ Fair Market Value
(1) Cash donation ................................................................... $200,000
(2) Unimproved land held for six years ($110,000 basis) ....................... 200,000
(3) Maize Corporation stock held for eight months ($140,000 basis) ......... 200,000
(4) Brown Corporation stock held for nine years ($360,000 basis) ............ 200,000
Joe has asked you to help him decide which of these potential contributions will be most advantageous tax-wise. Jay Corporation's taxable income is $3.5million before considering the contribution. Rank the four alternatives and write a letter to Mr. Thompson communicating your advice?