Question

for donors claiming large u.s. tax deductions on artwork, irs rules require a \qualified appraisal\ once the piece exceeds a set dollar threshold. in such cases, an independent specialist must ____ the canvas at a defensible fair - market value—neither inflated to flatter the donor nor understated to escape scrutiny—using recent auction sales as benchmarks.
1
mark for review
which choice completes the text with the most logical and precise word or phrase?
a) inflate
b) authenticate
c) appraise
d) consign

Explanation:

To solve this, we analyze each option:

• Option A: "inflate" means to increase artificially, but the context needs a word related to determining fair - market value, not inflating it (and the text says "neither inflated..."), so A is incorrect.
• Option B: "authenticate" means to verify the authenticity of something, not to determine its fair - market value. The focus here is on valuation for tax deduction, so B is incorrect.
• Option C: "appraise" means to assess the value of something, which fits the context of a "qualified appraisal" to determine the fair - market value of the artwork for tax purposes.
• Option D: "consign" means to send something to be sold, which is not related to determining the value of the artwork for tax deduction, so D is incorrect.

Answer:

C. appraise