George Operates a Business Thatin 2020 Generated Revenues of $50

question 59

Multiple Choice

George operates a business thatin 2020 generated revenues of $50 million and allocable taxable income of $560,000. Included in the computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income, and $180,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year?

• A)$168,000
• B)$222,000
• C)$280,000
• D)$830,000
• E)$880,000

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Definitions:

Full Term

Refers to a pregnancy that reaches completion, typically around 39 to 40 weeks, leading to the birth of a baby.

Period Of The Zygote

Approximately a 2-week period from the time of fertilization of a human ovum by a sperm to the time of implantation in the uterine wall.

Period Of The Fetus

Lasting from the ninth week of gestation until birth, the time of rapid growth and further differentiation when the reproductive system forms, gains in body weight occur, and the brain and nervous system continue to develop.

Chromosomes

Structures made of DNA and proteins that contain the genetic information of an organism.