A Business Machine Valued at $800 Was Contributed to a Charitable

question 29

Multiple Choice

A business machine valued at $800 was contributed to a charitable organization during the year. fte machine cost $1,000 but was depreciated down to $600 before the donation was made. Indicate the correct income tax treatment with respect to the donation.

• A) Contribution of $600 (no income recognized)
• B) Contribution of $1,000 (income of $200 recognized)
• C) Contribution of $800 (income of $200 recognized)
• D) Contribution of $800 (no income recognized)
• E) None of the above