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Jagdish Patel would like to know how much of his unused RRSP deduction room will carry forward to the next taxation year. Assume the federal

Jagdish Patel would like to know how much of his unused RRSP deduction room will carry forward to the next taxation year. Assume the federal government's annual RRSP limit for the current year is set at $26,000. Jagdish provides you with the following information:
Unused RRSP Deduction Room at December 31 of the prior year = $250
Prior year Earned Income = $82,500
Current year Earned Income = $95,750
RRSP contribution made to his own self-administered RRSP plan during the current year = $12,430
Jagdish does not have an employer provided pension plan, so his pension adjustment in the prior year and current year is zero.
Jagdish takes the maximum RRSP deduction on his current year's tax return. What is Jagdish Patel's unused RRSP deduction room at the end of the current taxation year?
A.
$2,670
A is the answer, but why? Please show calculation.

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