When answering please use and cite the FASB ASC Codification.
Littlest Things, Inc., (LTI), made a charitable donation of a piano once owned by Elton John, and intends to claim a charitable deduction on its taxes, of the value of the piano. The deduction should be allowable, and at the full fair market value of the piano, since LTI is donating it to a museum covering English musicians, and the museum plans to exhibit the piano. The appraiser's estimates of the fair value of the piano, ranging from $ 30,000 up to $ 90,000, and the expected likelihood of a court agreeing with the valuations are listed immediately following:
Valuation likelihood of prevailing
$ 90,000 15%
$ 70,000 40%
$ 50,000 60%
$ 30,000 90%
LTI has taxable income of over $ 1,000,000, so the 10% limitation will not cause any problems. LTI will deduct $ 70,000 as a charitable donation on its form 1120. LTI may use how much as a charitable expense deduction for the calculation of income tax expense on LTI's income statement?