Calculate the allowed interest expense deduction under IRC 163j based on the following income statement:
Calculate the allowed interest expense deduction under IRC 163j based on the following income statement:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Calculate the allowed interest expense deduction under IRC 163j based on the following income statement:
Gross Sales
Cost of Goods Sold
Gross Profit
Interest Expense- regular
Depreciation
Interest Expense Floor Plan
All other deductions
Total Business Deductions
Net Income
Interest Income Earned
$35,000,000
22,000,000
13,000,000
7,000,000
1,000,000
200,000
3,000,000
11,200,000
1,800,000
40,000
Capital Gain- non-business
Taxable Income before 163j limit $1,890,000
50,000
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