On April 8,2008,Oriole Corporation donated a painting worth $150,000 to the Texas Art Museum,a qualified public charity.The museum included the painting in its permanent collection.Oriole Corporation purchased the painting 5 years ago for $75,000.Oriole's charitable contribution deduction is $150,000 (ignoring the taxable income limitation).

Question

Quizplus · Accepted Answer

The painting is capital gain property which the museum puts to a use that is related to its exempt function. Thus,the amount of the deduction is equal to the fair market value of the painting,or $150,000.

On April 8,2008,Oriole Corporation Donated a Painting Worth $150,000 to the Texas