During the Current Year, Gray Corporation, a C Corporation in the Financial

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The Answer is a. Gray's total amount of charitable contributions is $270,000 [$20,000 (stock) +$250,000 (painting)], computed as follows:
Stock: this is ordinary income property, as a sale of the stock would not result in a long-term capital gain or a § 1231 gain for Gray (i.e., STCG). Thus, the amount of the contribution is the stock's basis, or $20,000.
Painting: this is capital gain property, as a sale of the painting would result in a long-term capital gain for Gray. The painting is tangible personal property and its use is related to the charitable organization's exempt function. Thus, the amount of the contribution is the painting's fair market value, or $250,000.
b. Gray's current year charitable deduction is limited to $180,000 [10% × $1.8 million (taxable income before charitable deduction)], and the excess charitable contribution of $90,000 ($270,000 - $180,000) is carried forward to the five succeeding tax years.

During the Current Year, Gray Corporation, a C Corporation in the Financial

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During the Current Year, Gray Corporation, a C Corporation in the Financial

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