Joeseph Thompson is president and sole shareholder of Jay Corporation. In December 2010, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University of Maine, a qualifed public charity. Joe is considering the following alternatives as charitable contribution
in December 2010:
Fair Market
1 Cash donation 120000
2 Unimproved land held for six years(20000 basis) 120000
3 Maize Corporation stock held for eight months (20000 basis) 120000
4 Brown Corporation stock held for two years (170000 basis) 120000
Joe has asked you to help him decide which of these potential contributions will be most advantageous taxwise. Jay's taxable income $3.5 million before considering the contribution. Rank the four alternatives.