Zeke made the following donations to qualified charitable organizations during the year: $\begin{array}{lcc}&\text { Basis}&\text { Fair Market }\&&\text { Value }\
\begin{array}{l}
\text { Used clothing of taxpayer and his family (all acquired } \
\text { more than a year ago) }
\end{array} & \$ 1,350 & \$ 375 \
\begin{array}{l}
\text { Stock in ABC, Inc., held as an investment for 15 } \
\text { months }
\end{array} & 12,000 & 10,875 \
\begin{array}{l}
\text { Stock in MNO, Inc., held as an investment for 11 } \
\text { months }
\end{array} & 15,000 & 18,000 \
\text { Real estate held as an investment for two years } & 15,000 & 30,000
\end{array}$ The used clothing was donated to the Salvation Army? the other items of property were donated to Eastern State University. Both are qualified charitable organizations. Disregarding percentage limitations, Zeke's charitable contribution deduction for the year is:
A) $43,350.
B) $56,250.
C) $59,250.
D) $60,375.
E) None of these.

Question

Quizplus · Accepted Answer

Zeke's charitable contribution deduction includes the fair market value of the used clothing ($375), the lower of basis or fair market value for the stock in ABC, Inc. since it was held for more than a year (thus, $10,875), the fair market value of the stock in MNO, Inc. because it appreciated in value and was held for less than a year ($18,000), and the fair market value of the real estate held for more than a year ($30,000). Adding these amounts together gives $375 + $10,875 + $18,000 + $30,000 = $59,250.

Zeke Made the Following Donations to Qualified Charitable Organizations During