Was ken justified in taking a deduction based on appraisal

Reference no: EM131721737

Problem

There will be 4 Group Discussion Board Forums throughout the course. Groups will be assigned alphabetically based on last name. The purpose of Group Discussion Board Forums is to generate interaction among students in regard to relevant current course topics. You are required to post 1 thread of at least 500 words and 2 replies of at least 250 words each in response to 2 classmates' threads. For each thread, you must support your assertions with at least 2 citations other than the textbook. The Bible must be one of those sources. Everything must be in current APA format, and citations for the replies are not required but encouraged.

Question: Ken donated a painting to the Hamilton City Art Museum. He acquired the painting 20 years ago at a cost of $10,000. Ken had the painting appraised by the owner of a Hamilton art store, a qualified art appraiser, who estimated its value at $50,000. Ken believed the painting was worth more than $50,000, so he had it appraised by an art dealer from Chicago. The Chicago art dealer, also a qualified art appraiser, appraised the painting at a value of $120,000. Ken itemized deductions and took a charitable contribution deduction of $120,000. Was Ken justified in taking a deduction based on the higher appraisal? Justify your answer.

Reference no: EM131721737

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