Ask Question
16 July, 06:39

Remsco has taxable income of $60,000 before considering charitable contributions. The $60,000 is net of a dividends received deduction of $12,000. Its charitable contributions for the year were $7,500. What is Remsco's current-year charitable contribution deduction and contribution carryover?

+3
Answers (1)
  1. 16 July, 06:55
    0
    D) $7,200 current-year deduction; $300 carryover

    Explanation:

    Remsco's total modified taxable income for the year = $60,000 (net income) + $12,000 (dividends received deductions) = $72,000

    Corporations can deduct charitable contributions up to 10% of their total modified taxable income for the year:

    $72,000 x 10% = $7,200

    since the contributions made during this year exceeded the limit by $300, that will be the amount of the carryover for future years.

    * Modified taxable income is the taxable income determined without regard to any base erosion tax benefit, i. e. total taxable income including any deductions made like DRD
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Remsco has taxable income of $60,000 before considering charitable contributions. The $60,000 is net of a dividends received deduction of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers