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Level 1

How to record a donation to charity of office equipment no cash exchanged just donation receipt

We donated some furniture and computers to Charity . 


Company did non receive any cash for it we received a donation slip . 

 

How would I record this since it is approx $2000 (Fair Market Value ) ?

 

What accounts would I have to credit and debit since it is a non cash donation ? 

 

 

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Level 12

Re: How to record a donation to charity of office equipment no cash exchanged just donation receipt

Depending on your business entity type you might be disallowed from claiming charitable donations on your business return. If you are a sole proprietor or other pass through entity like a LLC or partnership only the individuals can take a donation deduction and so the current book value of the equipment would be distributed out of the business to the owners per their share. If value is zero it is zero but removes the stuff from inventory and off of balance sheet. Consider it like a sale at zero price. Then the individuals can claim the value given

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