Q4

Lyle Corp. is a distributor of pharmaceuticals and sells only to retail drug stores. During 2021, Lyle received unsolicited samples of nonprescription drugs from a manufacturer. Lyle donated these drugs in 2021 to a qualified exempt organization and deducted their fair market value as a charitable contribution. What should be included as gross income in Lyle's 2021 return for receipt of these samples? Net discounted wholesale price. $0 Fair market value. $25 nominal value assigned to gifts