McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 76

{Research} Coattail Corporation (CC) manufactures and sells women and children's coats.This year CC donated 1,000 coats to a qualified public charity.The charity distributed the coats to needy women and children throughout the region.At the time of the contribution, the fair market value of each coat was $80.Determine the amount of CC's charitable contribution (the taxable income limitation does not apply) for the coats assuming the following:
a.CC's adjusted basis in each coat was $30
b.CC's adjusted basis in each coat was $10