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

question 31

Multiple Choice

George operates a business that in 2020 generated revenues of $50 million and allocable taxable income of $680,000. Included in the computation of allocable taxable income were$906,000 of business interest expense, $26,000 of business interest income, and $899,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year?

• A) $204,000
• B) $141,000
• C) $199,000
• D) $899,000
• E) $949,000

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Definitions:

Preschoolers

Young children typically between the ages of 3 and 5 years old who are in early childhood, just before the start of formal education.

Social Interactions

The process by which individuals act and react in relation to others in a social context.

Cliques

refers to small, exclusive groups of individuals, often within a larger community, bound together by common interests or social standings.

Reference Groups

Groups of people with whom one compares oneself.