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Business
Accounting
George operates a business that generated revenues of $55 million and allocable taxable income of $1.30 million. Included in the computation of allocable taxable income were deductible expenses of $242,500 of business interest and $252,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year? A)$390,000 B)$538,500 C)$1,552,500 D)$314,250 E)$241,500

George operates a business that generated revenues of $55 million and allocable taxable income of $1.30 million. Included in the computation of allocable taxable income were deductible expenses of $242,500 of business interest and $252,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year? A)$390,000 B)$538,500 C)$1,552,500 D)$314,250 E)$241,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 112.

George operates a business that generated revenues of $55 million and allocable taxable income of $1.30 million. Included in the computation of allocable taxable income were deductible expenses of $242,500 of business interest and $252,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year? A)$390,000 B)$538,500 C)$1,552,500 D)$314,250 E)$241,500
Transcribed Image Text:George operates a business that generated revenues of $55 million and allocable taxable income of $1.30 million. Included in the computation of allocable taxable income were deductible expenses of $242,500 of business interest and $252,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year? A)$390,000 B)$538,500 C)$1,552,500 D)$314,250 E)$241,500
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