In February of the current year, Brent Corporation donates computer equipment that it purchased six months ago to Eastside High School for use in its educational program. The donated property had a $20,000 adjusted basis to Brent and a $40,000 FMV. What is the amount of the gift?

Question

Quizplus · Accepted Answer

The amount of the gift is based on the FMV of the donated property, which is $40,000. The donor's adjusted basis in the property is not relevant in determining the amount of the gift. Therefore, the amount of the gift is $40,000.

In February of the Current Year, Brent Corporation Donates Computer