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What is the amount of the deduction

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Question - The Board of Directors of Goggle Inc. met on December 20th, 2020 and all members of the board voted in favor of making a $1,000,000 donation to the STEM organization (which operates as a 501(c)(3) qualifying charitable organization).

After the board approved the donation. To fund this donation, Goggle Inc. was transferring shares of stock in Willow Inc. common stock. Goggle Inc. had acquired Willow Inc. stock on January 15, 1997, for $80/share and owned 100,000 shares (paying $8,000,000). Goggle held this stock for investment. On March 13, 2021, Willow Inc. stock was trading for $800/share when the CFO of Goggle Inc. transferred 1,250 shares to the STEM Organization as a charitable donation.

1) Larry would like to know, first, if Goggle Inc. is allowed to take the charitable deduction in 2020;

2) What is the amount of the deduction (before any limitations based on taxable income for the year).

Reference no: EM133130393

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