Problem $L(10$ points$){?}_{(})$

There are more than FIVE federal income tax implications in the following description. Some of the federal income tax implications are more valuable than others. IDENTIFY THE FEDERAL INCOME TAX IMPLICATIONS.

The officers of CAT$/$CUB Corporation are having their monthly meeting. Agenda items include:

A$.$ Discussion focusing on inventory that has accumulated as a result of the coronavirus. Some officers want to sell the excess inventory, others want to donate the inventory to a charity, while a third group favors holding on to the items in inventory until the market for the product returns to pre$-$pandemic levels.

B$.$ A review of current machinery and equipment used in CAT$/$CUB$\text{'}$s warehouse. Some machines have dropped in value due to the lack of activity at the present time and an expected lull in sales. Some pieces of equipment have seen their fair market value increase due to CAT$/$CUB$\text{'}$s ability to utilize the equipment in a variety of ways as a response to the needs of pandemic$-$impacted operations.

C$.$ Common stock held in Ford and JCPenney. Both of these stocks have dropped in value over the past $90$ days. Ford has suspended its dividends while JCPenney is contemplating providing a reduced cash dividend.

D$.$ Several insurance policies are being reviewed. The company offering inventory insurance is planning to adjust its premiums based on the drop in value of some inventory items. Life insurance coverage on the CAT$/$CUB officers will be increased while the group life insurance coverage for all employees will not be altered.