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Generous Foods, Inc. is a C corporation. It has excess inventory of pasta. The fair market value is $10,000 and Generous basis is 12,500. It
Generous Foods, Inc. is a C corporation. It has excess inventory of pasta. The fair market value is $10,000 and Generous basis is 12,500. It wants to make a contribution to Forgotten Harvest. Why should it sell the inventory and donate the sale proceeds?
Select one:
a.
the inventory is for the charitys purpose
b.
contributing the inventory qualifies for an increased charitable deduction
c.
the sale creates an ordinary loss and a charitable contribution deduction
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