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

question 109

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

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Definitions:

Social Advocacy

Involves efforts to influence public policy and resource allocation decisions within political, economic, and social systems and institutions.

Cause Advocacy

The act of actively supporting or advocating for a specific cause, issue, or set of values to instigate change or raise awareness.

Health Care Reform

Changes and updates made to the health care system to improve access, quality, and affordability of healthcare.

Class Advocacy

Efforts or actions taken to support and defend the interests of a specific class or group of people, often in the context of social justice and rights.