Question

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

Answer 1

Answer:

1. $27,188

2. $48,000

3. 212,000

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.