FruAgro Company has average annual gross receipts of $50 million annually. This year, FruAgro earned $1 million of business interest income, incurred $20 million of business interest expense and has adjusted taxable income of $37 million. Required: Compute FruAgro's current deduction for business interest and the amount of any business interest carryforward. (The CARES Act applies. Enter your answers in dollars not in millions of dollars.) Answer is complete but not entirely correct. Amount $18,500,000 Business interest deduction Business interest carryforward $ 1,000,000
FruAgro Company has average annual gross receipts of $50 million annually. This year, FruAgro earned $1 million of business interest income, incurred $20 million of business interest expense and has adjusted taxable income of $37 million. Required: Compute FruAgro's current deduction for business interest and the amount of any business interest carryforward. (The CARES Act applies. Enter your answers in dollars not in millions of dollars.) Answer is complete but not entirely correct. Amount $18,500,000 Business interest deduction Business interest carryforward $ 1,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:FruAgro Company has average annual gross receipts of $50 million annually. This year, FruAgro earned $1 million of business interest
income, incurred $20 million of business interest expense and has adjusted taxable income of $37 million.
Required:
Compute FruAgro's current deduction for business interest and the amount of any business interest carryforward. (The CARES Act
applies. Enter your answers in dollars not in millions of dollars.)
Answer is complete but not entirely correct.
Amount
$ 18,500,000
Business interest deduction
Business interest carryforward
$ 1,000,000 1
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