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Red Corp., a C corporation, wants to make a donation to a public charity in 2020 to generate a tax deduction. Before any charitable contribution
Red Corp., a C corporation, wants to make a donation to a public charity in 2020 to generate a tax deduction. Before any charitable contribution deduction, Red Corp will have taxable income of $400,000 (no DRD and no NOL carryovers) in 2020. Red Corp. is deciding between donating one of the following:$50,000 cashCapital gain property (stock) worth $30,000; AB = $10,000 Old inventory worth $20,000; AB = $30,000 What would Red Corp.s 2020 charitable contribution deduction be if Red Corp. donated the stock? donated the inventory?
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