Purple Corporation (A Calendar Year Taxpayer) Is Engaged in the Business

question 9

Multiple Choice

Purple Corporation (a calendar year taxpayer) is engaged in the business of retailing CD players and makes the following donations during the year: $\begin{array}{ll}&\text { Fair Market }\\\text { Adjusted Basis }&\text { Value }\\\hline\text { CD players (held as inventory) }\\\text { to the local Women's Shelter }&\$8,000&\$12,000\\\text { Stock in Music acquired two years ago and held as }\\\text { an investment to a Catholic Church seminary }&6,000&10,000\\\text { Delivery van to local SPCA (animal shelter) }&8,000&4,000\end{array}$
How much qualifies for the charitable contribution deduction?

• A)$18,000.
• B)$22,000.
• C)$24,000.
• D)$26,000.
• E)None of the above.

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Definitions:

"Reasonable."

Being in accordance with logic, fairness, or moderate estimation; often used to describe actions or thoughts that are justified under the circumstances.

Jerome Kagan

A developmental psychologist known for his work on temperament and the role it plays in emotional and psychological development.

Consciousness

The state of being awake and aware of one's surroundings and one's own thoughts and feelings.

Critical Decisions

Decisions that are highly important and can have significant consequences on the outcome of a situation or the future of an individual or organization.