Question

Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. a. Amber Corporation donated inventory of clothing (basis of $24,000, fair market value of $30,000) to a qualified charitable organization that operates homeless shelters. $fill in the blank 9a9067069fa000e_1

Answer 1

$27,000

Step-by-step explanation:

Computation for the charitable contribution deduction

Using this formula

Charitable contribution deduction = (Adjusted basis )+[ 50% (Fair Value – Adjusted Basis)]

Let plug in the formula

Charitable contribution deduction= 24,000 + [50% (30,000 – 24,000)]

Charitable contribution deduction= 24,000+ (50%*6,000)

Charitable contribution deduction= 24,000+3,0000

Charitable contribution deduction = 27,000

Therefore the charitable contribution deduction will be $27,000