Blueboy Inc. contributes inventory to a qualified charity for use in feeding the needy. The inventory has a $70,000 FMV and a $30,000 adjusted basis. Blueboy Inc. can take a charitable contribution deduction of

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Quizplus · Accepted Answer

The charitable contribution deduction for inventory is based on the lesser of the inventory's fair market value or adjusted basis. In this case, the FMV is $70,000 and the adjusted basis is $30,000, so the deduction is limited to $30,000. Therefore, choice C is the correct answer.