What is the amount of circle charitable contribution

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Question - Circle Corporation, an accrual method taxpayer, manufactures and sells mainframe computers. In January of the current year, Circle Corporation donates a mainframe that was par of tis inventory to City College. City College will use the computer for physical science research. Circle's basis in the mainframe is $300,000. The computer FMV is $650,000. On December 15 of current year, Circle also pledged stock to the Red Cross and promised delivery of the stock by March 1 of the following year. The stock's FMV is $100,000 and Circle's adjusted basis in the stock is $50,000. Circle has held the stock for over one year. Circle's taxable income (before deducting any charitable contributions) for the year is $4,000,000.

a) What is the amount of Circle's charitable contribution for the current year?

b) How much of the contribution can Circle deduct in the current year and how much may be carried over, if any?

Reference no: EM131929304

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