The New Tech Corporation contributes some of its inventory of scientific equipment to the computer department of

Question:

The New Tech Corporation contributes some of its inventory of scientific equipment to the computer department of Great University during the current year. At the date of the contribution, the equipment has a fair market value of $38,000. New Tech’s basis in the equipment is $12,000.

a. How much can New Tech deduct as a charitable contribution?

b. Would your answer change if New Tech’s basis in the equipment were $16,000?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...