Zerotech Corporation Donates the Following Property to an Elementary School

question 8

Essay

Zerotech Corporation donates the following property to an elementary school:
• Computer printer purchased three years ago for $1,000. The printer has a $500 FMV and $0 adjusted basis on contribution date.
• Computer equipment acquired one year ago at a cost of $5,000. The equipment has an $8,000 FMV and $0 adjusted basis on contribution date.
• Computer software acquired two months ago at a cost of $10,000. The software will be used in a prekindergarten program. Its FMV on the contribution date is $10,000 and it has an adjusted basis of $0.
a)Identify any donation qualifying for special treatment.
b)What is Zerotech's charitable contribution deduction?

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Definitions:

Alveolates

Alveolates are a group of protists characterized by the presence of alveoli, small cavities enclosed by membranes located just under the cell surface, and include taxa such as dinoflagellates, apicomplexans, and ciliates.

Brown Algae

A group of photosynthetic, multicellular marine algae, including species like kelp, that are typically brown in color due to the presence of carotenoid pigments.

Single-Celled

Referring to organisms that consist of only one cell, carrying out all the functions necessary for life.

Dinoflagellates

A phylum of microorganisms found in marine and freshwater environments, known for their ability to conduct photosynthesis and for some species, to produce bioluminescence and harmful algal blooms.