Answer: $7400 ; $260
Explanation:
From the question, we are given the information that Remsco has taxable income of $64,000 and a charitable contribution limit modified taxable income of $74,000 and that its charitable contributions for the year were $7,660.
It should be noted that the charitable contribution is 10% of $74,000 which is the charitable contribution limit modified taxable income given in the question. So, this will be:
= 10% of $74,000
= 10/100 × $74,000
= 0.1 × $74,000
= $7400
Therefore, Remsco's current-year charitable contribution deduction is $7400.
Remsco's contribution carryover will be the difference between his charitable contributions for the year which is $7,660 and his current-year charitable contribution deduction is $7400. This will be:
= $7660 - $7400
= $260
