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:

Embryo Transferred

A step in the in vitro fertilization process where a fertilized egg, or embryo, is placed into a woman's uterus with the goal of establishing a successful pregnancy.

Second-Stage Labor

The phase of labor during childbirth when the woman actively pushes to help the baby move down the birth canal.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the developing fetus through the umbilical cord.

Birth Canal

The passageway through which an infant is born; the vagina.