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Lawyer Diana has a good eye for furniture. While abroad in China in Year 1, she purchased a carved wooden chair for $1,000. After Diana retired from law practice, she became a docent at the Philadelphia Museum of Art, which displays antique furniture. She also volunteered weekly at her church, St. Agatha's. Through her volunteer activities at the Museum, she discovered in Year 3 that the chair was a rare huanghuali chair worth $50,000. Diana is deciding what to do with the chair. She could (1) donate it to the Museum for display, or (2) donate it to St. Agatha's, which probably would sell the chair to fund its charitable projects, or (3) keep it in her estate and provide in her will for the chair to go to her grandson David, who always has admired the chair. Diana's annual AGI in retirement is $180,000. Which of the following statements, in (a) through (d) below, is false? a) If Diana bequeaths the chair to David, she, her estate and David never will pay any income tax on the difference between the value of the chair at her death and her $1,000 Basis in the chair. b) If Diana donates the chair to the Museum, her charitable contribution deduction for the chair will equal the fair market value of the chair, $50,000. c) If Diana donates the chair to her church, her charitable contribution deduction for the chair will equal her Basis in the chair, $1,000. d) If Diana donates the chair to the Museum, she would take part of her charitable contribution deduction in Year 1 and the rest of the deduction in Year 2. e) None of the statements in (a) through (d) is false

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