In the Current Year, Tern, Inc

question 10

Multiple Choice

In the current year, Tern, Inc., a calendar year C corporation, has $9 million of adjusted taxable income, $300,000 of business interest income, zero floor plan financing interest, and $3.2 million of business interest expense. Tern has average gross receipts for the prior three-year period of $45 million. Which of the following statements is correct about the treatment of Tern's business interest expense?

• A) Current year deduction of $3.2 million.
• B) Current year deduction of $2,790,000, carryforward of $410,000.
• C) Current year deduction of $2,790,000, carryback of $410,000.
• D) Current year deduction of $3 million, carryforward of $200,000.
• E) Current year deduction of $3 million, carryback of $200,000.

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Definitions:

Dethronement

The process or feeling of losing a privileged position, often used in psychology to describe the feelings of a child when a new sibling is born.

Behavior Problem

Actions or patterns of behavior that are disruptive or harmful to oneself or others.

Insecure And Hostile

Being insecure and hostile describes a state of lacking confidence and showing aggression or anger towards others.

Style Of Life

A concept in Adlerian psychology, referring to an individual's unique way of achieving superiority and personal goals.