Peng owns equipment used in his sole proprietor business with an adjusted basis of $12,000 and a fair market value of $28,000. Depreciation claimed was $6,500. How much could Peng deduct as a charitable contribution if he contributed the equipment to a qualified charity?

Peng owns equipment used in his sole proprietor business with an adjusted basis of $12,000 and a fair market value of $28,000. Depreciation claimed was $6,500. How much could Peng deduct as a charitable contribution if he contributed the equipment to a qualified charity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Peng owns equipment used in his sole proprietor business with an adjusted basis of $12,000 and a fair market value of $28,000.
Depreciation claimed was $6,500. How much could Peng deduct as a charitable contribution if he contributed the equipment to a
qualified charity?

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