George Operates a Business That Generated Revenues of $50 Million

question 99

Multiple Choice

George operates a business that generated revenues of $50 million and allocable taxable income of $1.25 million. Included in the computation of allocable taxable income were deductible expenses of $240,000 of business interest and $250,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year?

• A)$375,000
• B)$522,000
• C)$1,500,000
• D)$300,000
• E)$228,000

---

Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes or inflation, providing a more accurate reflection of an economy's size and growth.

Annual Average Growth Rate

A percentage that shows the mean annual growth rate of an investment over a specified time period, assuming reinvestment of dividends and capital gains.

China

A country in East Asia, the world's most populous nation, with a vast landscape encompassing grassland, desert, mountains, lakes, rivers, and more than 14,000km of coastline.

Real GDP Per Person

The value of all final goods and services produced within a country in a year, adjusted for inflation, divided by the country's population.