In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified public charity. The museum included the painting in its permanent collection. Oriole Corporation purchased the painting 5 years ago for $10,000. Oriole's charitable contribution deduction is $30,000 (ignoring the taxable income limitation).

a. True

b. False

Question

Business

Tanner Hanson

27 May, 15:27

In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified public charity. The museum included the painting in its permanent collection. Oriole Corporation purchased the painting 5 years ago for $10,000. Oriole's charitable contribution deduction is $30,000 (ignoring the taxable income limitation).

a. True

b. False

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Answers (1)

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Rios · Answer 1

b. False

Explanation:

Selling price of Painting = $30,000

Purchase price of Painting = $10,000

Contribution of Painting = Value of Painting - Purchase price of painting

Contribution of Painting = $30,000 - $10,000 = $20,000

Oriole's charitable contribution deduction is $20,000

So, the statement is false as the contribution is $20,000 rather $30,000.