Remsco Inc.,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?

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The charitable contribution deduction is limited to 10% of the modified taxable income, which is $72,000. Therefore, the maximum deduction is $7,200. Since Remsco contributed $7,500, the current-year deduction is $7,200, and the carryover is $300.