Carl purchased a machine for use in his trade or business two years ago for $30,000. During the current year, Carl donates the machine to the local community college. At the time of the contribution, the machine's adjusted basis is $10,000 and its FMV is $15,000. Carl's AGI for the year is $48,000. What is the amount of his charitable contribution deduction?
A) $10,000
B) $14,000
C) $15,000
D) $25,000
A) $10,000
Because the machine is ordinary income property (if sold, the machine would have resulted in section 1245 ordinary income), the amount of the contribution is adjusted basis of $10,000.
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