TCOs 4 and 5 Grocer Services Corporation a calendaryear taxp

TCOs 4 and 5) Grocer Services Corporation (a calendar-year taxpayer), a wholesale distributor of food, made the following donations to qualified charitable organizations during the year:
 

 

Adjusted Basis

Fair Market Value

Food (held as inventory) donated to the Ohio Children\'s Shelter

$3,500

$8,000

Passenger van to Ohio Children\'s Shelter, to be used to transport children to school

$7,500

$7,100

Stock in Acme Corporation acquired 7 months ago and held as an investment, donated to Southwest University

$4,000

$6,200

How much qualifies for the charitable contribution deduction?

$15,000

$16,850

$17,250

$19,450

None of the above

Solution

Food 5750 =3500+(8000-3500)/2 Passenger van 7100 Stock 4000 Charitable contribution deduction 16850 Option 2 is correct