7-58: Corporate Charitable Contributions. Circle Corporation, an accrual method taxpayer, manufactures and sells mainframe computers. In January of the current year, Circle Corporation donates a mainframe that was part of its inventory to City College. City College will use the computer for physical science research. Circles basis in the mainframe is $300,000. The computers FMV is $650,000. On December 15 of the current year, Circle also pledged stock to Red Cross and promised delivery of the stock by March 1 of the following year. The stocks FMV is $100,000 and Circles adjusted basis in the stock is $50,000. Circle has held the stock for over one year. Circles taxable income (before deducting any charitable contributions) for the current year is $4,000,000. a. What is the amount of Circles charitable contribution for the current year? b. How much of the contribution can Circle deduct in the current year and how much may be carried over, if any