Problem:
Individual I ("I") transferred $10,000,000 to a charitable remainder annuity trust in 2020. The trust paid I $1,000,000 per year for 10 years. At the end of 10 years (2030) there was $5,000,000 in the trust which was distributed to a qualified charity at that time. The interest rate is 5%. Which of the following is a TRUE statement? a. A has made a complete gift in 2020 b. A has made a complete gift in 2030 c. A will receive a charitable contribution income tax deduction of $2,278,300 in 2030 d. A will receive a charitable contribution income tax deduction of $2,721,700 in 2030 e. None of a-d is correct