4. Apex, Inc., donated a computer to Bird Shelter, a voluntary welfare organization. The computer cost Apex $40,000. On the date of donation, it had a book value of $25,000 and a fair value of...

4. Apex, Inc., donated a computer to Bird Shelter, a voluntary welfare organization. The computer cost Apex $40,000. On the date of donation, it had a book value of $25,000 and a fair value of $20,000. Bird Shelter’s depreciation expense should be based on

a. $40,000.

b. $25,000.