Carl Purchased a Machine for Use in His Trade or Business

question 43

Multiple Choice

Carl purchased a machine for use in his trade or business two years ago for $30,000.During the current year,Carl donates the machine to the local community college.At the time of the contribution,the machine's adjusted basis is $10,000 and its FMV is $15,000.Carl's AGI for the year is $48,000.What is the amount of his charitable contribution deduction?

• A)$10,000
• B)$14,000
• C)$15,000
• D)$25,000

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Definitions:

Federal Government

The national government of a federation, holding authorities and responsibilities distinct from those of member states or provinces, particularly in matters of national concern.

Reconstruction

The era following the Civil War in the United States, during which the southern states were reconstructed and reincorporated into the Union, spanning from 1865 to 1877.

Land Policy

The set of laws and regulations governing the use, development, and preservation of land, often shaping the patterns of land ownership and land use in a country or region.

Southern Politics

The political landscape and history unique to the southern United States, characterized by distinct regional issues, identities, and alignments.