Remsco Has Taxable Income of $74,000 and a Charitable Contribution

question 7

Multiple Choice

Remsco has taxable income of $74,000 and a charitable contribution limit modified taxable income of $79,000. Its charitable contributions for the year were $8,060. What is Remsco's current-year charitable contribution deduction and contribution carryover?

• A)$7,400 current-year deduction; $660 carryover.
• B)$8,060 current-year deduction; $0 carryover.
• C)$500 current-year deduction; $7560 carryover.
• D)$7,900 current-year deduction; $160 carryover.

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Definitions:

Loss On Disposal

The financial loss incurred when disposing of an asset for less than its book value or carrying amount.

Gain On Disposal

The profit realized from the sale of a fixed asset, such as machinery or real estate, above its book value.

Accumulated Depreciation

Refers to the total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the asset's wear and tear over time.

Batting Cages

An enclosed area for baseball or softball players to practice batting, usually equipped with a pitching machine.