Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable cont
ributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990.
1 answer:
Answer:
Complete question is attached in form of image.
a). Maximum amount of charitable deduction for Cash Contrbutions = 7650 + 5450
= $ 13100
a). Maximum amount of charitable deduction for Property Donations
= 15250 + 18375
= $ 33625
The amount of deduction for contribution to American Heart Association will be the amount equal to the cost of antique painting given to the american heart association.
The amount of deduction for contribution to First Methodist Church will be the amount equal to the FMV of Coca-Cola stock given to the first methodist church.
FMV stands for Fair market value.
Maximum amount of charitable deduction for Cash contribution = $ 13100 and Maximum amount of charitable deduction for Property donation = $ 33625.
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Answer:
Bond Price = $951.9633746 rounded off to $951.96
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment, annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.
Coupon Payment (C) = 1000 * 10% = $100
Total periods remaining (n) = 3
r or YTM = 12%
Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12] + 1000 / (1+0.12)^3
Bond Price = $951.9633746 rounded off to $951.96
