Super Corporation gives a painting to a museum for public display on August 6. The painting was purchased on April 3 of the same year for $20,000 and is worth $30,000 at the date of gift. Also, Super accrues a charitable contribution on December 30 and pays the $12,000 contribution on February 1 of the next year. Super Corporation is a calendar-year corporation that uses the accrual method of accounting. Before considering the 10% limitation rule, the maximum deduction for the current year is

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For accrual basis taxpayers like Super Corporation, charitable contributions are deductible in the year authorized if paid within a reasonable period after the end of the year. The painting's deduction is based on its fair market value at the time of the donation ($30,000), and the cash contribution accrual of $12,000 is also deductible, totaling $42,000 before considering any limitation rules.

Super Corporation Gives a Painting to a Museum for Public