Question: During the current year, SGG Corp contributed to charity $10,000 cash and marketable securities with a fair market value of $50,000 and a tax basis of $35,000.
Required: 1. Calculate SGG's current contribution deduction and final taxable income before contribution is:
a. $1 million
b. $ 500,000
2. How would your answers to question 1 change if the contributed property were inventory rather than securities?