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.