Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2016. She purchased the stock for $25,200 on December 28, 2015, and it had a fair market value of $36,000 when she made the donation.
a. The stock is treated as ordinary income property and Donna's charitable contribution deduction is $ for tax purposes.
b. Assume instead that the stock had a fair market value of $21,600 (rather than $36,000) when it was donated to the American Red Cross. Donna's charitable contribution deduction would be $ for tax purchases.