George operates a business that generated revenues of $50 million and allocable taxable income of $560,000. Included in the computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income, and $180,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year if the business does not qualify under the gross income test?
George operates a business that generated revenues of $50 million and allocable taxable income of $560,000. Included in the computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income, and $180,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year if the business does not qualify under the gross income test?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:George operates a business that generated revenues of $50 million and allocable taxable income of $560,000. Included in the
computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income,
and $180,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year if
the business does not qualify under the gross income test?
Transcribed Image Text:O
O
O
O
$560,000
$612,000
$168,000
$452,000
$486,000
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