Stock in the ABC Corporation was contributed to the London School of Economics and Business, a public school in the United Kingdom. The basis in the stock was $1,000, but its fair market value was $1,500 at the time of the donation. Indicate the correct income tax treatment as a result of the donation. The stock was held long-term.

a. Deductible contribution of $1,000 (no gain recognized)

b. Deductible contribution of $1,500 (no gain recognized)

c. Deductible contribution of $1,500 (capital gain recognized $300)

d. Deductible contribution of $1,000 (capital gain recognized $500)

e. No deduction allowed because it is a foreign charity

Answer rating: 100% (QA)

Answer b Deductible contribution of 1500 no gain recognized Explanati... View the full answer