Amount and Character of Loss Transactions . On September 30 of the current year Silver Fox Corporation files for bankruptcy . At the time , it estimates that the total FMV of its assets is $ 725,000 , whereas the total amount of its outstanding debt amounts to $ 950,000 . Silver Fox Corporation has been engaged in the resale of tax preparation and tax research-related books and software for several years . a . At the time of the bankruptcy , Silver Fox is owned by Randall , who purchased the stock from an investor for $ 250,000 several years ago . Randall is single . What are the amount and character of the loss sustained by Randall upon Silver Fox ’ s bankruptcy ? b . How would your answer to part a change if Randall originally organized Silver Fox Corporation , capitalizing it with $ 250,000 of cash and assuming Silver Fox qualifies as a small business corporation ? c . How would your answer to Part a change if Randall were a corporation instead of an individual ? d . How would your answer to Part b change if Randall were a corporation instead of an individual ? Problem C3-38 Charitable Contribution Deduction Limitation . Zeta Corporation reports the following results for 2006 and 2007 : Adjusted taxable income $ 180,000 $ 125,000 Charitable contributions ( cash ) 20,000 12,000 The adjusted taxable income is before Zeta claims any charitable contributions deduction , NOL or capital loss carryback , dividends-received deduction , or U . S .