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