1. In 2021, OCC Corp. made a charitable donation of $400,000 to the American Red Cross. For the year, OCC reported taxable income of $1,400,000 before deducting any charitable contributions, before deducting its $20,000 dividends received deduction, and before deducting its $50,000 NOL carryover from last year. Assume the donation is a qualified contribution. What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2021?

1. Coattail Corporation (CC) manufactures and sells women and childrens coats. This year CC donated 1,000 coats to a qualified public charity. The charity distributed the coats to needy women and children throughout the region. At the time of the contribution, the fair market value of each coat was $78. CCs adjusted basis in each coat was $28. What is the amount of CCs charitable contribution (the taxable income limitation does not apply)?