Witte Corporation reported the following results for the current year: $\begin{array}{|l|r|}
\hline\text { Taxable income before the dividends-received deduction }\
\text { and before the charitable contributions deduction } & \$ 160,000 \
\hline \text { Dividends-received deduction } & 10,000 \
\hline \text { Charitable contributions } & 30,000\\hline
\end{array}$ What is the amount of the charitable contribution carryover to next year?

Question

Quizplus · Accepted Answer

The charitable contributions deduction is limited to 10% of taxable income before the dividends-received deduction, which is $160,000. Therefore, the allowable deduction is $16,000. The excess $14,000 ($30,000 - $16,000) can be carried over to the next year.

Witte Corporation Reported the Following Results for the Current Year