Lyle Corp. is a distributor of pharmaceuticals and sells only to retail drug stores. During the current year, Lyle received unsolicited samples of nonprescription drugs from a manufacturer. Lyle donated these drugs during the current to a qualified exempt organization and deducted their fair market value as a charitable contribution. What should be included as gross income in Lyle's current year return for receipt of these samples?
a. Fair market value.
b. Net discounted wholesale price.
c. $25 nominal value assigned to gifts.
d. $0
Answer: A
Tax
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