George Operates a Business That in 2020 Generated Revenues of $50

question 97

Multiple Choice

George operates a business that in 2020 generated revenues of $50 million and allocable taxable income of $630,000. Included in the computation of allocable taxable income were$903,500 of business interest expense, $23,500 of business interest income, and $870,250 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year?

• A)$189,000
• B)$174,750
• C)$232,750
• D)$870,250
• E)$920,250

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Definitions:

Babinski Reflex

A reflex action of the toes, especially in infants, where the big toe moves upward and the other toes fan out in response to the sole being stroked, indicative of neurological function.

Plantar Reflex

A reflex elicited when the sole of the foot is stimulated, leading to toe flexion or extension, indicative of neurological function.

Moro Reflex

An involuntary response seen in newborns, where they suddenly extend their arms and legs and then curl them in if they feel like they are falling.

Denver Developmental Screening Test

A standardized test used to assess developmental problems in children from infancy through preschool.