(Answered) Question - tax strategy problemdean makes a pledge of 30000

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Question - Tax Strategy Problem

Dean makes a pledge of $30,000 to a local college. The college is willing to accept either cash or marketable securities in fulfillment of the pledge. Dean owns stock in Ajax Corporation worth $30,000. The stock was purchased five years ago for $10,000. Dean's marginal tax rate of 15%. Should Dean sell the stock and then donate the cash, or should he donate the stock directly? Compute the next tax benefit from each alternative and explain the difference.

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