Question

In the current year, Crow Corporation, a corporation, donated scientific property (basis of $20,000, fait market value of $50,000) to state University, a qualified charitable organization, to be used in research. Crow had held the property for four months as inventory. Crow Corporation may deduct $50,000 for the charitable contribution (ignoring the taxable income limitation). • True False

Answer 1

Answer False Explanation: = $ 30,000 + 50). ($50,000 - $30,000) -$ 30,000 + 50:1. ($20,000) -- $30,000 +$ 10,00.0 - $40.000 . Grow Corporation can deduct $10,000 for its Charitable contribution. The scientific property orainary income property donated for use in research which allows for an exception. The base of the property is $30,000. It's fair market value is $50.000 therefore the property has an appreciation of $20,000. Grow Gorporation can deduce the basis plus fifty percent of the appreciation. In this scenario şify percent of $20.000 is $10.000 allowing crow Corporation to have a total dediction of $40.0oo.

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