During the current year,Owl Corporation (a C corporation),a retailer of children's apparel,made the following donations to qualified charitable organizations. Adjusted Basis Fair Market Value Children's clothing held as inventory,to Haven for Hope $10,000 $15,000 Stock in Exxon Corporation acquired two years ago and held as an investment,to City University 5,000 3,000 Land acquired four years ago and held as an investment,to Humane Society 50,000 75,000 How much qualifies for the charitable contribution deduction (ignoring the taxable income limitation)?
A)$63,000
B)$65,000
C)$90,500
D)$92,500
E)None of the above

Question

During the current year,Owl Corporation (a C corporation),a retailer of children's apparel,made the following donations to qualified charitable organizations. Adjusted Basis Fair Market Value Children's clothing held as inventory,to Haven for Hope $10,000 $15,000 Stock in Exxon Corporation acquired two years ago and held as an investment,to City University 5,000 ​ 3,000 ​ Land acquired four years ago and held as an investment,to Humane Society 50,000 ​ 75,000 ​ How much qualifies for the charitable contribution deduction (ignoring the taxable income limitation)?
A)$63,000
B)$65,000
C)$90,500
D)$92,500
E)None of the above

Quizplus · Accepted Answer

The qualified charitable contribution deduction for the inventory of children's clothing held as inventory is $15,000 (fair market value) since it is a donation of inventory. For the stock in Exxon Corporation, the qualified charitable contribution deduction is $5,000 (adjusted basis), since it is a donation of capital gain property held for less than a year. For the land, the qualified charitable contribution deduction is $75,000 (fair market value), since it is a donation of capital gain property held for more than a year. Therefore, the total qualified charitable contribution deduction is $15,000 + $5,000 + $75,000 = $90,000.

During the Current Year,Owl Corporation (A C Corporation),a Retailer of Children's