Remsco Has Taxable Income of $60,000 and a Charitable Contribution

question 91

Multiple Choice

Remsco has taxable income of $60,000 and a charitable contribution limit modified taxable income of $72,000. Its charitable contributions for the year were $7,500. What is Remsco's current-year charitable contribution deduction and contribution carryover?

• A)$6,000 current-year deduction; $1,500 carryover.
• B)$7,500 current-year deduction; $0 carryover.
• C)$1,200 current-year deduction; $6,300 carryover.
• D)$7,200 current-year deduction; $300 carryover.

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Definitions:

Stable Prices

A situation in the economy where prices of goods and services remain consistent over time without significant inflation or deflation.

Trade Surplus

A situation where a country's exports exceed its imports over a certain period, leading to a positive balance of trade.

Economic Engines

Key industries or sectors within an economy that drive economic growth, employment, and wealth generation.

Consumer Goods

Products and commodities that are bought and used by individuals and households for personal use.