Final answer:
The correct answer is B. Remsco can deduct the full amount of their charitable contributions, which is $7,500, with no carryover, assuming the higher deduction limits of the CARES Act are applicable.
Step-by-step explanation:
Since Remsco has taxable income of $60,000 and a charitable contribution limit modified taxable income of $72,000, they are allowed to deduct charitable contributions up to certain limits as specified by tax regulations. Generally, corporations can deduct charitable contributions up to 10% of their modified taxable income. With a modified taxable income of $72,000, Remsco could deduct up to $7,200 (10% of $72,000).
However, because Remsco's actual charitable contributions were $7,500, it seems like they contributed more than the limit. Nevertheless, for tax years beginning before January 1, 2022, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, businesses could deduct charitable contributions up to 25% of their taxable income. Assuming those provisions apply here, with a taxable income of $60,000, Remsco could deduct up to $15,000 ($60,000 x 25%). Therefore, they can deduct the full amount of $7,500 with no carryover since it is less than both 25% of taxable income and the modified limit calculated on taxable income.