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haritable Contributions of Property. Blue Corporation donates the following property to Johnson Elementary School:
• XYZ Corporation stock purchased two years ago for $25,000. The stock has a $19,000 FMV on the contribution date.
• Computer equipment built one year ago at a cost of $16,000. The equipment has a $50,000 FMV on the contribution date. Blue is not in the business of manufacturing computer equipment.
• PQR Corporation stock purchased six months ago for $12,000. The stock has an $18,000 FMV on the contribution date.
The school will sell the stock and use the proceeds to renovate a classroom to be used as a computer laboratory. Blue's taxable income before any charitable contribution deduction, dividends-received deduction, or NOL or capital loss carryback is $400,000.
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