Question

In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified charity. The museum included the painting in its permanent collection. Oriole Corporation purchased the painting five years ago for $10,000. Oriole’s charitable contribution deduction is $____________.

Answer 1

Answer:

$30,000

Explanation:

Oriole Corporation purchased the painting five years ago for $10,000. In the current year, the cost of the same painting is $30,000. Oriole Corporation donated this painting to the Texas Art Museum.

So, Oriole’s charitable contribution deduction is $30,000 as the current value of the painting is $30,000.