Mr Haugh Owns a Sporting Goods Store as a Sole

question 17

Multiple Choice

Mr. Haugh owns a sporting goods store as a sole proprietorship. This year, he donated baseball equipment (bats, gloves, balls) to the local YMCA to use in their community sports programs. His cost basis in the inventory items was $45,700, and their retail value was $68,200. Which of the following statements about this donation is true?

• A) Mr. Haugh must recognize $22,500 ordinary business income and is allowed a $68,200 business deduction.
• B) Mr. Haugh must recognize $22,500 ordinary business income and is allowed a $68,200 charitable contribution deduction.
• C) Mr. Haugh is allowed a $45,700 charitable contribution deduction.
• D) Mr. Haugh is allowed a $68,200 charitable contribution deduction.

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Definitions:

Social Networking Site

An online platform that allows users to create a public profile and interact with other users on the website.

Appropriate Boundaries

The limits that define acceptable behavior and interactions in a relationship, helping to ensure respect and protect individuals' well-being.

Personal Email Address

An individual's private electronic mail contact, typically used for personal communications rather than professional or official matters.

Timely and Accurate Records

Detailed and precise documentation made in a prompt manner, essential for effective management and decision-making processes.