George Operates a Business That Generated Revenues of $50 Million

question 33

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) $552,000
• C) $1,500,000
• D) $300,000
• E) $228,000

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Definitions:

Leaders

Individuals who influence and guide others within an organization or team towards achieving specific goals or visions.

Natural Reward

An intrinsic reward that comes from the activity itself rather than from external factors, providing personal satisfaction and motivation.

Pleasurable

Providing a sense of gratification or enjoyment.

Boring Parts

Components or segments of a process, presentation, or material that are perceived as uninteresting or mundane.