Problem 5-32 (Algorithmic) (LO. 6) Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Adjusted Fair Market Basis Value Painting held four years as an investment, to a church, which sold it immediately $14,640 $24,400 Apple stock held two years as an investment, to United Way, which sold it immediately 38,430 85,400 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 Therefore, the total charitable contribution is $ 138,470 X. Feedback Check My Work Generally, a charitable contribution of property results in a deduction equal to the property's fair market value at the date of the gift. As a result of this rule, a contribution of loss property (fair market value less than basis) should be avoided as the loss inherent in the property (i.e., the excess of basis over fair market value) would never be recognized. A sale of the property to recognize the loss, followed by a charitable contribution of the sale proceeds, would produce a more favorable tax result