Carl Purchased a Machine for Use in His Trade or Business

question 43

Multiple Choice

Carl purchased a machine for use in his trade or business two years ago for $30,000.During the current year,Carl donates the machine to the local community college.At the time of the contribution,the machine's adjusted basis is $10,000 and its FMV is $15,000.Carl's AGI for the year is $48,000.What is the amount of his charitable contribution deduction?

• A)$10,000
• B)$14,000
• C)$15,000
• D)$25,000

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Definitions:

Fee Mediation

A dispute resolution process involving a neutral third party to help negotiate and settle disputes over professional fees or charges.

Fixed Fee

A predetermined fee paid to a lawyer for completing a specific task.

Hourly Rate

A method of compensation based on the number of hours worked, typically used for freelance or temporary jobs.

Contingency Fee

A fee paid to a lawyer that is based on a percentage of the sum recovered by the client.