Question
During 2020, Owl Corporation (a C corporation), a retailer of childrens apparel, made the donations listed below to qualified charitable organizations. Adjusted Basis Fair Market
During 2020, Owl Corporation (a C corporation), a retailer of childrens apparel, made the donations listed below to qualified charitable organizations.
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| Adjusted Basis | Fair Market Value |
| Childrens clothing held as inventory, to Haven for Hope (a homeless shelter) | $10,000 | $15,000 |
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|
|
|
| Stock in Exxon Corporation acquired two years ago and held as an investment, to City University | 5,000 | 3,000 |
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|
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| Land acquired four years ago and held as an investment, to Humane Society | 50,000 | 75,000 |
Required:
- Both City University and the Humane Society sold the property donated by Owl while Haven for Hope distributed the clothing to families who came to the shelter. Indicate for each item the amount that could be deducted as a charitable contribution (ignore any limitations).
b. What advice would you have given Owl with respect to its charitable contributions for 2020?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
