My question relates to one of my company's products. The product has been shipping several years and has an established published retail price of $119.95. We want to donate 2,000 of them to 501(c)3 and they say they will provide us with a tax form placing the value of the contribution at the retail price of (2,000 times $119.95) = $239,900. Our unit cost on the product is $30, so we have a total of $70,000 direct cost in the 2,000 units. What would be our tax benefit? Do we get to deduct

1) $239,000
2) $239,900 minus $70,000
3) $70,000

Thanks.