Question: Problem 10-36 (Algorithmic) (LO. 6, 8) In December each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization).

Problem 10-36 (Algorithmic) (LO. 6, 8)

In December 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
(1) Cash donation $142,600
(2) Unimproved land held for six years ($21,390 basis) $142,600
(3) Blue Corporation stock held for eight months ($21,390 basis) $142,600
(4) Gold Corporation stock held for two years ($171,120 basis) $142,600

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.

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