Josh Donated a Painting to the Local Art Museum

question 20

Multiple Choice

Josh donated a painting to the local art museum.He purchased the painting twenty years ago for $34,000,and its appraised FMV at date of gift was $115,000.Which of the following statements about this donation is true?

• A)Josh must recognize an $81,000 long-term capital gain and is allowed a $115,000 charitable contribution deduction.
• B)Josh recognizes no gain and is allowed a $115,000 charitable contribution deduction.
• C)Josh recognizes no gain and is allowed a $34,000 charitable contribution deduction.
• D)None of the above is true.

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Definitions:

Accounting

The systematic and comprehensive recording of financial transactions pertaining to a business, and the process of summarizing, analyzing, and reporting these transactions to oversight agencies and tax collection entities.

Differences

Differences can refer to discrepancies or variations between two or more items, figures, or concepts in various contexts.

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

Computed

Calculated or estimated following a specific procedure or formula.