Problem $4-33($LO$.6)$

Joseph Thompson is president and sole shareholder of Jay Corporation. In December of the current year, 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:

$$Fair Market Value$(1)$Cash donation$$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 taxwise. Jay Corporation's taxable income is $$3,500,000$ before considering the contribution.

Rank the four alternatives, and complete the letter to Mr$.$ Thompson communicating your advice.

Note: The land and stock holdings are "unrelated use property," but they are not "tangible personal property."