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:

Inferior Oblique

A muscle in the orbit of the eye that controls elevation of the eyeball and helps in movements such as looking upward.

Lateral Rectus

A muscle in the eye that controls lateral movement of the eyeball, moving it away from the midline.

Superior Oblique

A cranial nerve-controlled muscle in the eye that helps in rotating the eye downwards and outwards.

Superior Rectus

A muscle in the eye that is responsible for upward movement, helping to control the direction in which the eye looks.