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

question 27

Multiple Choice

George operates a business that in 2020 generated revenues of $50 million and allocable taxable income of $620,000. Included in the computation of allocable taxable income were$903,000 of business interest expense, $23,000 of business interest income, and $864,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year?

• A)$186,000
• B)$181,500
• C)$239,500
• D)$864,500
• E)$914,500

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Definitions:

Inference

Conclusion based on speculation.

Other Cultures

Refers to the customs, beliefs, arts, institutions, and all other products of human work and thought created by people not belonging to one's own culture.

Listening Barrier

Anything that interferes with the ability to accurately perceive and interpret messages during the listening process.