Compute marys tax savings from the contribution assuminga


Mary Vale contributed a bronze statuette to a local museum. Mary received the statuette as a gift from her grandmother 35 years ago, and her tax basis was only $200. However, the statue's appraised fair market value at date of contribution was $8,500. Compute Mary's tax savings from the contribution assuming:

a. Mary doesn't itemize deductions on her Form 1040.

b. Mary itemizes deductions and has a 25 percent marginal tax rate.

c. Mary itemizes deductions and has a 39.6 percent marginal tax rate

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Financial Management: Compute marys tax savings from the contribution assuminga
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