A Corporation expects to have $950,000 in taxable income but wants to lower its tax bill. To do this, it donates a painting that the corporation has owned for the last 4 years to an art museum so it may claim a charity deduction.

The corporation does not know the museum intends to sell the painting to help fund the cost of a new exhibit. The painting originally cost the corporation $100,000 and is now valued at $120,000.

What is the corporation's new taxable income?

Answer rating: 100% (QA)

When the corporation donates the painting to the museum it can claim a charitable deduct... View the full answer