McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

تمرين 35

Coattail Corporation (CC) manufactures and sells women and children's coats. This year, CC donated 1,000 coats to a qualified public charity. The charity distributed the coats to needy women and children throughout the region. At the time of the contribution, the fair market value of each coat was $80. Determine the amount of CC's charitable contribution (the taxable income limitation does not apply) for the coats assuming the following:
a. CC's adjusted basis in each coat was $30.
b. CC's adjusted basis in each coat was $10.