Steve is considering donating his personal car, a red Ford Mustang, to a qualified charity. He purchased it for $7,000 5 years ago but it has a fair market value of $12,000. The charity would sell the car and use the proceeds to help sick children. What amount would Steve be able to claim as a charitable contribution deduction if he donates the car?

(In response to comment for more info) There is no depreciation rate, the fair value has actually gone up, regardless this information is not needed for this problem and neither is the market interest rate.)