4.5.3 Basic Quiz -- Gifts of Inventory

When inventory is donated to charity, the resulting tax deduction is generally equal to the fair market value of the inventory.

True False

Gifts of inventory that are for the care of the ill, needy or infants may receive an enhanced deduction.

True False

Both individuals and corporations can make gifts of inventory for the care of the ill, needy or infants and receive an enhanced deduction.

True False

A gift of inventory that is for the care of the ill, needy or infants can get favorable treatment only if related to the charity's purpose.

True False

A gift for the "care of the ill" is any gift that helps a person who is sick and doesn't feel good.

True False

A "needy person" is a person who lacks the things he or she needs to live (versus the things he or she might want) as a result of poverty or a temporary situation.

True False

An "infant" is any person under the age of 24 months (2 years).

True False

A C corporation or individual engaged in a trade or business may claim an enhanced deduction for contributions of "apparently wholesome food."

True False

C corporations may make "qualified book contributions" and receive an enhanced deduction.

True False

A C corporation's gift of inventory for the care of the ill to a nonprofit think tank will qualify for a tax deduction that is greater than the cost basis of the inventory.