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A Clothing Manufacturing Corporation Donates Last Year's Inventory to the Red

Question 39

Multiple Choice

A clothing manufacturing corporation donates last year's inventory to the Red Cross for use in its disaster relief efforts.The clothes have a fair market value of $200,000 and a basis to the corporation of $75,000.What is its charitable contribution deduction?


A) $200,000
B) $150,000
C) $137,500
D) $75,000

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