Canny Foods Co

question 9

Multiple Choice

Canny Foods Co. is considering three ways it could contribute to a local, qualified charity. First, it could give $10,000 in cash. Second, it could give stock it initially purchased two years ago for $8,000 but is now worth $12,000. Third, it could give items of inventory with a fair market value of $7,000 but with an adjusted basis of $3,000. Which of the following correctly describes the relation among possible charitable contributions in terms of amount deductible for tax purposes?

• A) Cash > Stock > Inventory.
• B) Stock > Cash > Inventory.
• C) Inventory > Stock > Cash.
• D) Inventory > Cash > Stock.

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Definitions:

Digital Inputs

Inputs that receive digital signals (on or off) from sensors or switches to a control system or digital circuit.

Motor Defined Input

Specific inputs, like voltage and current types, defined by a motor's design for optimal performance.

Magnetic Motor Starters

A type of motor starter that uses an electromagnetic coil to operate the motor's on/off control mechanism.

Output Relays

Devices that receive signals from control systems and switch on or off, controlling the flow of electricity to an output device.