Xxx company manufactures and sells furnishings for


Question - XXX Company manufactures and sells furnishings for hospitals. In the current year, it donates some of its inventory to a newly constructed hospice. The hospice is adjacent to a cancer treatment center and is intended to care for indigent and terminal patients. The property donated has an adjusted basis of $40,000 and a fair market value of $90,000. What is the amount of the charitable contribution deduction if XXX Company is a:

a. Sole proprietorship?

b. C corporation

c. Would answer to (b) change if the fair market value of the property was $121,000 (not $90,000)?

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