Zerotech Corporation Donates the Following Property to an Elementary School

question 8

Essay

Zerotech Corporation donates the following property to an elementary school:
• Computer printer purchased three years ago for $1,000. The printer has a $500 FMV and $0 adjusted basis on contribution date.
• Computer equipment acquired one year ago at a cost of $5,000. The equipment has an $8,000 FMV and $0 adjusted basis on contribution date.
• Computer software acquired two months ago at a cost of $10,000. The software will be used in a prekindergarten program. Its FMV on the contribution date is $10,000 and it has an adjusted basis of $0.
a)Identify any donation qualifying for special treatment.
b)What is Zerotech's charitable contribution deduction?

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Definitions:

Pustule

A small, inflamed, pus-filled blister on the skin, often indicative of an infection or acne.

Papule

A small, raised, and solid pustule or pimple on the skin, indicating various types of skin conditions.

Nodule

A small lump or mass of tissue within the body, which can be due to various causes, benign or malignant.

Stratum Corneum

The outermost layer of the skin, consisting of dead cells that provide a barrier to protect underlying tissue.