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:

Sense of Touch

The ability to perceive pressure, temperature, and pain through the skin, one of the five traditional senses.

Thrive

To grow, develop, or be successful, especially under favorable conditions or in a particular aspect such as health, economy, or personal development.

Physical Attractiveness

pertains to the attributes, qualities, or features of an individual that are considered aesthetically pleasing or beautiful by others.

Initial Meeting

The first encounter or gathering between two or more persons, often setting the groundwork for future interactions or relationships.