Yellow Corporation donates the following property to the State University: ABC Corporation stock purchased two years

Question:

Yellow donates the following property to the State University:
• ABC stock purchased two years ago for $18,000. The stock, which trades on a regional stock exchange, has a $25,000 FMV on the contribution date.
• Inventory with a $17,000 adjusted basis and a $22,000 FMV. State will use the inventory for scientific research that qualifies under the special Sec. 170(e)(4) rules.
• An antique vase purchased two years ago for $10,000 and having an $18,000 FMV. State University plans to sell the vase to obtain funds for educational purposes.
Yellow Corporation’s taxable income before any charitable contributions deduction, NOL or capital loss carryback, or dividends-received deduction is $250,000.
a. What is Yellow Corporation’s charitable contributions deduction for the current year?
b. What is the amount of its charitable contributions carryover (if any)?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...