Identify Which of the Following Statements Is True

question 59

Multiple Choice

Identify which of the following statements is true.

• A)When a corporation donates appreciated capital gain property to a charity, the amount of the contribution deduction generally equals the property's FMV.
• B)When a corporation donates appreciated capital gain property to a private nonoperating foundation, the corporation's contribution is limited to the property's FMV minus the ordinary gain that would have resulted from the property's sale.
• C)When a corporation contributes appreciated property to a charity, the charitable contribution deduction is the property's FMV or adjusted basis, depending on the election made by the taxpayer.
• D)All of the above are false.

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Definitions:

Earned Income

Income derived from active participation in a trade or business, including wages, salaries, tips, and other forms of compensation.

Business Opportunities

Prospects for creating new business ventures or expanding existing ones, potentially leading to increased profit and growth.

Surveying

The technique, profession, and science of determining the terrestrial or three-dimensional positions of points and the distances and angles between them.

Earned Income

Revenue generated from the sale of goods and services, as opposed to donations or grants.