Ludlow Corporation has excess inventory that it

no longer wants. In order to clear out its

warehouse to make room for shipments of new

inventory, it has decided to donate the inventory

(bedding equipment) to several hospitals. The

basis of the inventory is $170,000 and its fair

market value is $220,000. The corporation made

no other contributions this year. Determine its

charitable contribution deduction assuming that its

taxable income before the dividends-received

deduction and charitable contributions deduction

is $1,000,000 and included in gross income is

$100,000 in dividends received from a 35-percentowned

domestic corporation.