Plums basis in the computers is 70000 and their fair market, Ask an Expert

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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 $70,000, and their fair market value is $250,000. What is Plum's deduction for the contribution of the computers (ignoring the taxable income limitation)?

a. $70,000.

b. $140,000.

c. $160,000.

d. $250,000.

e. None of the above.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9445064

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