A Corporation Who Makes a Charitable Contribution of Property for the Care

question 104

True/False

A corporation who makes a charitable contribution of property for the care of the needy gets a deduction equal to the adjusted basis of the property.

---

Definitions:

Capital Surplus

A balance sheet account; the portion of shareholders’ contributions exceeding the par or stated value of shares. Also called additional paid in capital.

Derivative Action

A lawsuit brought by shareholders on behalf of a corporation against third parties, typically involving claims of mismanagement or abuse by corporate officers.

Independent Directors

Board members who are not part of a company's day-to-day operations, ensuring unbiased oversight and reducing conflicts of interest.

Zapata Test

A legal standard used to determine the independence and good faith of a special litigation committee's investigation and recommendations in corporate litigation.