In each of the following independent cases for tax year 2020, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Required: a. Company A has ATI of $83,000 and business interest expense of $23,250. b. Company B has ATI of $109,500, business interest expense of $59,750, and business interest income of $3,300. c. Company C has taxable income of $60,400 which includes business interest expense of $96,500 and depreciation of $26,500.
In each of the following independent cases for tax year 2020, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Required: a. Company A has ATI of $83,000 and business interest expense of $23,250. b. Company B has ATI of $109,500, business interest expense of $59,750, and business interest income of $3,300. c. Company C has taxable income of $60,400 which includes business interest expense of $96,500 and depreciation of $26,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A 17
Transcribed Image Text:In each of the following independent cases for tax year 2020, determine the amount of business interest expense deduction and
disallowed interest expense carryforward, if any.
Required:
a. Company A has ATI of $83,000 and business interest expense of $23,250.
b. Company B has ATI of $109,500, business interest expense of $59,750, and business interest income of $3,300.
c. Company C has taxable income of $60,400 which includes business interest expense of $96,500 and depreciation of
$26,500.
(For all requirements, leave no cells blank - be certain to enter "0" wherever required.)
Interest expense
deduction
Disallowed interest
expense carryforward
a. Company A
b. Company B
c. Company C
$
0
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