Remsco has taxable income of $64,000 and a charitable contribution limit modified taxable income of $74,000. Its charitable contributions for the year were $7,660. What is Remsco's current-year charitable contribution deduction and contribution carryover

$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

borrow money from the government then pay the government back 5k