Plum Corporation (A C Corporation and a Computer Manufacturer) Donated

question 8

Multiple Choice

Plum Corporation (a C corporation and a computer manufacturer) donated 100 laptop computers to a local university (a qualified educational organization) this year. The computers were constructed by Plum earlier this year, and the university will use the computers for research and research training. Plum's basis in the computers is $35,000, and their fair market value is $120,000. What is Plum's deduction for the contribution of the computers (ignoring the taxable income limitation) ?

• A) $35,000
• B) $70,000
• C) $77,500
• D) $85,000
• E) $120,000

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Definitions:

Permissive

Refers to a lenient or liberal attitude, especially in the context of rules and disciplinary actions, favoring more freedom than restriction.

Authoritative Parents

A parenting style characterized by high demands and high responsiveness, where parents set clear standards but also respect their children’s autonomy.

Mexican American

An American citizen or resident of Mexican descent, often with a cultural heritage that includes traditions and customs from Mexico.

Authoritative

A parenting style characterized by high responsiveness and high demands, where parents set clear standards but are also understanding and communicative.