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Rachelle owns land used in her trade or business for more than one year. The basis is $10,500 and its FMV is $42,000. Her tax rate is %33 and her AGI is $165,000. She makes no other charitable contributions except for the ones considered below
A. If she gives the land to a university, determine her tax savings.
B. If she sells the land for $42,000, pays the tax and then contributes the remainder of the cash to the charity, determine her tax savings because of the contribution and the amount that the university receives. Assume that she has no other sales or exchanges during the year.
Tax savings because of contribution?
Amount that university receives?
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