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Julieta Simms is the president and sole shareholder of Simms
Corporation. Julieta plans for the corporation to make a
charitable contribution to the University of Washington, a
qualified public charity. She will have the corporation donate
Jaybird Corporation stock, held for five years, with a basis of
$11,000 and a fair market value of $25,000. Julieta projects a
$310,000 net profit for Simms Corporation in 2019 and a
$100,000 net profit in 2020. Julieta calls you on December
12, 2019, and asks whether she should make the contribution
in 2019 or 2020.
Complete the letter advising Julieta about the timing of the
For the present value computations, assume a 5% discount

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