Corner Grocery , Inc. , a C corporation with high taxable income , donates some of its inventory to the County Food Bank ( a charitable organization ) which distributes food to the needy . At the time of the contribution , the FMV of the inventory was $ 100,000 , and Corner Grocery's basis was $ 20,000 . Before considering the adjusted taxable income limitation for corporations , Corner Grocery will be allowed a charitable contribution deduction of

$ 100,000

$ 65,000

$ 40,000

$ 20,000