In the Current Year, Plum Corporation, a Computer Manufacturer, Donated

question 26

Multiple Choice

In the current year, Plum Corporation, a computer manufacturer, donated 100 laptop computers to a local school district (a qualified educational organization) . The computers were constructed by Plum earlier this year, and the school district allocated the computers among its various schools where they will be used for educational purposes. Plum's basis in the computers is $50,000, and their fair market value is $120,000. What is Plum's deduction for the contribution of the computers (ignoring the taxable income limitation) ?

• A)$0.
• B)$50,000.
• C)$85,000.
• D)$100,000.
• E)$120,000.

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Definitions:

Increase in Supply

A situation where the quantity of a good or service available for sale at each price point rises, shifting the supply curve to the right.

Increase in Quantity

A rise in the amount of a certain good or service produced or supplied in the market.

Adoption of New Technology

The process by which new tools, systems, or services are embraced and utilized by individuals, businesses, or organizations.

Market for Cars

The economic environment involving the buying, selling, and production of automobiles.