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Donation

Could someone please help me with this problem????

John Hunter, the president and sole shareholder of Huntger, Inc. has asked you to assist him in obtaining the maximum charitable contribution deduction for his corporation. The corporation has 36 desktop comptuers that ared almost two years old. Due to recent advances in technology, Hunter has decided to replace all of these computers with new, more powerful models. Each computer cost $5,0. and has a market value of $3,400 and a basis of $2,600. Hunter plans to donate the computers to a qualifed charitable organization, but has not decided which charity will be the beneficiary of the corporation's generosity. What advice would you offer John on the issues he raised?

Solution Preview

John should keep the following points in mind before finalizing the donation.

First of all, donations to the following groups or organizations is not tax deductible and thus, John should not consider the following groups for donations:

Political parties, political campaigns, or political action committees.
Donations given to individual people.
Fees or dues paid to professional associations. ...

Solution Summary

John should keep the following points in mind before finalizing the donation.

$2.19