Required information Problem 9-56 (LO 9-2) (Static) [The following information applies to the questions displayed below.] 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. Problem 9-56 Part-b (Static) Required: b-1. What is the maximum amount of business interest expense that Renee can deduct this year? b-2. How is the disallowed interest expense (if any) treated? Interest disallowed would be: Complete this question by entering your answers in the tabs below. Required B1 Required B2 What is the maximum amount of business interest expense that Renee can deduct this year? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places. Deductible Business Interest Expense million
Required information Problem 9-56 (LO 9-2) (Static) [The following information applies to the questions displayed below.] 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. Problem 9-56 Part-b (Static) Required: b-1. What is the maximum amount of business interest expense that Renee can deduct this year? b-2. How is the disallowed interest expense (if any) treated? Interest disallowed would be: Complete this question by entering your answers in the tabs below. Required B1 Required B2 What is the maximum amount of business interest expense that Renee can deduct this year? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places. Deductible Business Interest Expense million
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 22MCQ
Related questions
Question
Only need the answer to b-1.
![Required information
Problem 9-56 (LO 9-2) (Static)
[The following information applies to the questions displayed below.]
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.
Problem 9-56 Part-b (Static)
Required:
b-1. What is the maximum amount of business interest expense that Renee can deduct this year?
b-2. How is the disallowed interest expense (if any) treated? Interest disallowed would be:
Complete this question by entering your answers in the tabs below.
Required B1
Required B2
What is the maximum amount of business interest expense that Renee can deduct this year?
Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.
Deductible Business Interest Expense
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea2a999-7610-47e4-b269-0e2418893ee7%2Fcad613ff-848e-4500-a014-c8b2c4013442%2Fotcecyf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 9-56 (LO 9-2) (Static)
[The following information applies to the questions displayed below.]
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.
Problem 9-56 Part-b (Static)
Required:
b-1. What is the maximum amount of business interest expense that Renee can deduct this year?
b-2. How is the disallowed interest expense (if any) treated? Interest disallowed would be:
Complete this question by entering your answers in the tabs below.
Required B1
Required B2
What is the maximum amount of business interest expense that Renee can deduct this year?
Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.
Deductible Business Interest Expense
million
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