Question

Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations.

If required, round your answers to nearest dollar.
a. Amber Corporation donated inventory of clothing (basis of $43,500, fair market value of $54,375) to a qualified charitable organization that operates homeless shelters.
$
b. Brass Corporation donated stock held as an investment to Western College (a qualified organization). Brass acquired the stock three years ago for $30,000, and the fair market value on the date of the contribution is $48,000. Western College plans on selling the stock.
$
c. Ruby Corporation donates a sculpture held as an investment and worth $212,000 to a local museum (a qualified organization), which exhibits the sculpture. Ruby acquired the sculpture four years ago for $84,800.
$

Answer 1

1. $27,188

2. $48,000

3. 212,000

Step-by-step explanation:

Computation for the charitable contribution deduction

1. Based on the information given the calculation will be :The amount of the property's basis including 50% of the appreciation on the property

Charitable contribution deduction = [$43,500 + ($54,375- $43,500) * 50%]

Charitable contribution deduction = [$43,500 + ($54,375- $43,500) * 50%

Charitable contribution deduction =$43,500+$10,875*50%

Charitable contribution deduction =$27,188

b.Based on the information given what will be the

charitable contribution deduction is the fair market value on the date of the contribution of the amount of $48,000 reason been that it is a capital gain property Contribution.

c. Based on the information given what will be the charitable contribution deduction is the worth of the donated sculpture held as an investment of the amount of $212,000 reason been that it is a capital gain property Contribution.