Garth Corporation Donates Inventory Having an Adjusted Basis of $40,000

question 84

Multiple Choice

Garth Corporation donates inventory having an adjusted basis of $40,000 and an FMV of $150,000 to a qualified public charity. The inventory will be used by the charity to care for the ill. The maximum charitable contribution deduction before consideration of the 10% limitation is

• A)$40,000.
• B)$55,000.
• C)$80,000.
• D)$95,000.

---

Definitions:

Blood Flow

The continuous movement of blood through the circulatory system, delivering nutrients and oxygen to and removing wastes from cells and tissues.

Superior Mesenteric Artery

A major artery that supplies blood to the intestines, including parts of the stomach, pancreas, and the lower portion of the esophagus.

Small Intestine

A long, coiled section of the gastrointestinal tract where most digestion of food and absorption of nutrients occurs.

Cecum

Cul-de-sac forming the first part of the large intestine.