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Required: a. Company b. Company A has ATI of $77,000 and bus B has ATI of $100,500, busin

Required: a. Company b. Company A has ATI of $77,000 and bus B has ATI of $100,500, busin

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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In each of the following independent cases for tax year 2021, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $26 million. Required: a. Company A has ATI of $77,000 and business interest expense of $21,750. b. Company B has ATI of $100,500, business interest expense of $55,250, and business interest income of $2,700. c. Company C has taxable income of $55,600 which includes business interest expense of $93,500 and depreciation of $23,500. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not in million of dollars. a. Company A b. Company B c. Company C Interest expense deduction Disallowed interest expense carryforward
Transcribed Image Text:In each of the following independent cases for tax year 2021, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $26 million. Required: a. Company A has ATI of $77,000 and business interest expense of $21,750. b. Company B has ATI of $100,500, business interest expense of $55,250, and business interest income of $2,700. c. Company C has taxable income of $55,600 which includes business interest expense of $93,500 and depreciation of $23,500. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not in million of dollars. a. Company A b. Company B c. Company C Interest expense deduction Disallowed interest expense carryforward
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