Corner Grocery,Inc

question 45

Multiple Choice

Corner Grocery,Inc.,a C corporation with high taxable income,donates some of its inventory to the County Food Bank (a charitable organization) which distributes food to the needy.At the time of the contribution,the FMV of the inventory was $20,000,and Corner Grocery's basis was $12,000.Corner Grocery will be allowed a charitable contribution deduction of

• A)$20,000.
• B)$12,000.
• C)$8,000.
• D)$16,000.

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Definitions:

Product-Improvement Bias

The tendency in the calculation of inflation to not fully account for improvements in product quality, which can lead to an overestimation of inflation rates.

Cost of Living

The sum of funds necessary to meet essential costs, including accommodation, nutrition, taxation, and medical care in a specific location and period.

New Goods

Products that have been recently introduced to the market, often featuring new technologies or innovations.

Core CPI

A measure of the underlying trends in the Consumer Price Index, excluding food and energy prices because they can fluctuate widely from month to month.