Amber Corporation donated inventory of clothing (basis of $136,000, fair market value of $170,000) to a qualified charitable organization that operates homeless shelters.

Compute the charitable contribution deduction (ignoring the percentage limitation) for the C-corporation.

charitable contribution deduction = $153000

Explanation:

given data

basis = $136,000

fair market value = $170,000

solution

we get here charitable contribution deduction that is express as

charitable contribution deduction = Basis + 50% of (Fair - basis) ... 1

put here value and we get

charitable contribution deduction = $136,000 + 0.50 ($170,000 - $136,000)

charitable contribution deduction = $153000