Fred decides to gift 25 shares of ABC to his favorite charity. He had purchased the shares in 2015 at $20/share. The current market value of XYZ shares is $35. His average tax rate is 20% and his marginal tax rate is 32%. Select each of the correct answers. A. The value of his gift is $875 B. The tax savings for this gift is $175 C. The value of his gift is $500 OD. The tax savings for this gift is $280 OE. The capital gains tax on this gift will be $56.25

Fred decides to gift 25 shares of ABC to his favorite charity. He had purchased the shares in 2015 at $20/share. The current market value of XYZ shares is $35. His average tax rate is 20% and his marginal tax rate is 32%. Select each of the correct answers. A. The value of his gift is $875 B. The tax savings for this gift is $175 C. The value of his gift is $500 OD. The tax savings for this gift is $280 OE. The capital gains tax on this gift will be $56.25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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