Blue Corporation donates the following property to Johnson Elementary School: XYZ Corporation stock purchased two years ago for $25,000. The stock has a $19,000 FMV on the contribution date. Computer equipment built one year ago at a cost of $16,000. The equipment has a $50,000 FMV on the contribution date. Blue is not in the business of manufacturing computer equipment. PQR Corporation stock purchased six months ago for $12,000. The stock has an $18,000 FMV on the contribution date. The school will sell the stock and use the proceeds to renovate a classroom to be used as a computer laboratory. Blue's taxable income before any charitable contribution deduction,dividends-received deduction, or NOL or capital loss carryback is $400,000.
Required:
Question 1: What is Blue's charitable contributions deduction for the current year?
Question 2: What is Blue's charitable contribution carryback or carryover (if any)? In what years can it be used?
Question 3: What would have been a better tax plan concerning the XYZ stock donation?
Note: Provide support for your rationale.