On April 8,2010,Oriole Corporation donated a painting worth $75,000 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 $25,000.Oriole's charitable contribution deduction is $25,000 (ignoring the taxable income limitation).

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The charitable deduction for donated property is generally equal to the property's fair market value, which in this case is $75,000. The fact that Oriole Corporation purchased the painting for $25,000 five years ago is irrelevant for determining the charitable contribution deduction.

On April 8,2010,Oriole Corporation Donated a Painting Worth $75,000 to the Texas