Question

Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Adjusted Basis Fair Market Value Painting held four years as an investment, to a church, which sold it immediately $21,120 $35,200 Apple stock held two years as an investment, to United Way, which sold it immediately 55,440 123,200 Canned groceries held one month as inventory, to Catholic Meals for the Poor 7,140 11,900 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Painting: The amount of the contribution is basis . Stock: The amount of the contribution is fair market value . Groceries: The amount of the contribution is basis plus 50% of the appreciation on the property . Therefore, the total charitable contribution is $fill in the blank 4 .

Answer 1

$153,840

Step-by-step explanation:

Calculation to determine Determine the amount of Aquamarine Corporation's charitable deduction for the current year.

Using this formula

Total charitable deduction= PAINTING: basis

+STOCK: fair market value+GROCERIES: basis + 50% appreciation on property

Let plug in the formula

Total charitable deduction = $21,120 + 123,200 + 7,140 + 0.5(11,900-7,140)

Total Charitable deduction= $21,120 + 123,200 + 7,140 + 0.5(4,760)

Total charitable deduction= $21,120 + 123,200 + 7,140 + 2,380

Total charitable deduction=$153,840

Therefore the amount of Aquamarine Corporation's charitable deduction for the current year is $153,840