A C corporation donates inventory (basis of $9,000, fair market value of $10,000) to charity.Under certain circumstances, it can claim a charitable contribution deduction of $9,500.

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A C corporation can claim a charitable contribution deduction for the fair market value of donated inventory, up to 2 times its basis, or 10% of its taxable income (whichever is lower). In this case, the deduction would be $9,500 (the lower of the two limits).

A C Corporation Donates Inventory (Basis of $9,000, Fair Market