Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place. Adjusted Taxable Income million
Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place. Adjusted Taxable Income million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported
revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business
deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5
million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net
operating loss carryover.
a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense?
Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.
Adjusted Taxable Income
million
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